10 Pa. Code § 59.6. Timely escrow payments and treatment of escrow account balances.

§ 59.6. Timely escrow payments and treatment of escrow account balances.

(a)  Timely escrow disbursements required. If the terms of a mortgage loan require the borrower to make payments to the servicer of the mortgage loan for deposit into an escrow account to pay taxes, insurance premiums, and other charges for the mortgaged property, the servicer shall make payments from the escrow account in a timely manner, that is, on or before the deadline to avoid a penalty, as governed by the requirements in 12 CFR 1024.17(k) (relating to escrow accounts).
(b)  Refund of escrow balance.
   (1)  In general. Except as provided in paragraph (b)(2) of this section, within 20 days (excluding legal public holidays, Saturdays, and Sundays) of a borrower’s payment of a mortgage loan in full, a servicer shall return to the borrower any amounts remaining in an escrow account that is within the servicer’s control.
   (2)  Servicer may credit funds to a new escrow account. Notwithstanding paragraph (b)(1) of this section, if the borrower agrees, a servicer may credit any amounts remaining in an escrow account that is within the servicer’s control to an escrow account for a new mortgage loan as of the date of the settlement of the new mortgage loan if the new mortgage loan is provided to the borrower by a lender that:
     (i)   Was also the lender to whom the prior mortgage loan was initially payable;
     (ii)   Is the owner or assignee of the prior mortgage loan; or
     (iii)   Uses the same servicer that serviced the prior mortgage loan to service the new mortgage loan.

Cross References

   This section cited in 10 Pa. Code §  59.4 (relating to general disclosure requirements); and 10 Pa. Code §  59.7 (relating to error resolution procedures).

No part of the information on this site may be reproduced for profit or sold for profit.

This material has been drawn directly from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.