On June 2, 2021, the Consumer Financial Protection Bureau (CFPB) updated TILA-RESPA Integrated Disclosure (“TRID”) FAQs with guidance related to escrow account provisions in Regulation X, divided into four categories: General; Escrow Account Analysis; Deficiencies, Shortages, and Surpluses; and Public Guidance Documents.
The new FAQs generally cover existing escrow account provisions in the regulation, such as the definition for terms like escrow account, escrow account computation, and disbursement date. Other questions provide information on what must be in included in an escrow statement, and when a servicer must conduct an escrow account analysis. The FAQs also define the terms deficiency, shortage, and surplus in relation to an escrow account analysis and discuss how to handle each situation including what can be communicated to the borrower.
In addition to providing a restatement of the regulations covering escrow accounts, the last category discusses Public Guidance Documents that have been published in the Federal Register, including the titles “Initial Escrow Account Disclosure Statement-Format” and “Initial Escrow Account Disclosure Statement-Example.” Another FAQ covers how the CFPB has maintained Escrow Account Public Guidance Documents and their relationship to HUD’s prior guidance under RESPA.
The Escrow Disclosure Public Guidance Documents are now available on the CFPB’s mortgage serving webpage and RESPA resource page under the Additional Materials section.
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