SUBMISSION AT SETTLEMENT, OR WITHIN 45 CALENDAR DAYS OF SETTLEMENT. As noted in § 1024.17(c)(2), the servicer shall conduct an escrow account analysis before establishing an escrow account to determine the amount the borrower shall deposit into the escrow account, subject to the limitations of § 1024.17(c)(1)(i). After conducting the escrow account analysis for each escrow account, the servicer shall submit an initial escrow account statementto the borrower at settlement or within 45 calendar days of settlement for escrow accounts that are established as a condition of the loan.
The initial escrow account statement shall include the amount of the borrower's monthly mortgage payment and the portion of the monthly payment going into the escrow account and shall itemize the estimated taxes, insurance premiums, and other charges that the servicerreasonably anticipates to be paid from the escrow account during the escrow account computation year and the anticipated disbursement datesof those charges. The initial escrow account statement shall indicate the amount that the servicer selects as a cushion. The statement shall include a trial running balance for the account.
Pursuant to § 1024.17(h)(2), the servicer may incorporate the initial escrow account statement into the HUD-1 or HUD-1A settlement statement. If the servicer does not incorporate the initial escrow account statement into the HUD-1 or HUD-1A settlement statement, then the servicer shall submit the initial escrow account statement to the borrower as a separate document.
TIME OF SUBMISSION OF INITIAL ESCROW ACCOUNT STATEMENT FOR AN ESCROW ACCOUNT ESTABLISHED AFTER SETTLEMENT. For escrow accounts established after settlement (and which are not a condition of the loan), a servicer shall submit an initial escrow account statement to a borrower within 45 calendar days of the date of establishment of the escrow account.
Additional Information: https://www.consumerfinance.gov/eregulations/1024-17/2015-18239#1024-17-g