Posted by Anonymous on 10/26/05 11:13pm
Msg #72541

Impounds and a previous address

I just did a loan signing and the doc Notice to Borrower - Impound/Escrow Account asked to complete the following:
We desire to voluntarily establish an impound/escrow account
We desire not to establish an impound/escrow account
An impound/escrow account is required on this loan
There supposed to check one.

The borrower didn't know if they were supposed to have an impound account. We left it blank and she signed the doc. She said she would talk to her LO because she didn't know. What should we have done.

Also,id stated previous address, but she had been living at the current address for 1 year which she owned. Would you still put their current address on the journal or what is stated on the id? Borrower took an oath and I believed them.

Reply by sue_pa on 10/27/05 7:14am
Msg #72557

How can't you know if there is an escrow/impound account? Look at the HUD. Look at the first payment letter. Look at the closing instructions. Look at the initial escrow disclosure. Whether or not there is an escrow account is peppered throughout the documents.

Reply by BetsyMI on 10/27/05 7:34am
Msg #72561

An impound account is just another way of saying will the lender be collecting escrow each month from these people for their taxes. So if the borrower will be paying their taxes themselves you would have said no they don't want an impound account. If they will be paying their taxes every month with their monthly mortgage payment, then they would have said yes they want an impound account.

Reply by BetsyMI on 10/27/05 7:35am
Msg #72562

I would put their current address in your journal.