Finance

What is 'escrow account analysis' (escrow account review) in Oregon mortgage servicing?

AAn OREA audit of real estate trust accounts
BA lender's annual review of a borrower's escrow impound account to ensure it has sufficient funds to pay taxes and insurance, resulting in adjusted monthly payments if necessary✓ Correct
CThe buyer's review of closing costs before closing
DA title company's analysis of closing costs

Explanation

Mortgage servicers are required by RESPA to conduct annual escrow account analyses to ensure the account has adequate funds to pay property taxes and insurance while maintaining the permitted cushion (maximum 2 months). If the analysis shows a shortage (underfunding), the servicer adjusts the monthly escrow payment. An overage may be returned to the borrower. Oregon borrowers receive annual escrow statements.

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