Finance
A North Dakota escrow company holds $4,500 in escrow for property taxes. After the tax bill comes in at $4,200, the difference of $300 is:
AKept by the lender as profit
BEither returned to the borrower or credited to the next year's escrow account, per RESPA requirements✓ Correct
CPaid to the title company
DDonated to the county
Explanation
Under RESPA, lenders must perform an annual escrow analysis. If the escrow account has a surplus exceeding $50, the excess must be returned to the borrower or credited to future escrow payments. Lenders cannot retain escrow surpluses as profit.
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