RESPA Compliance-Procurement of Initial Escrow Account Statement
Section 1024.17 of RESPA specifies the need to provide Short Year statements in cases of Servicing Transfer and Loan Payoff. Cenlar produces the Short Year statements in these cases. RESPA requirements specify that the Short Year statement must be delivered to the borrower within 60 days of these events. For Cenlar to produce the information that is required on a Short Year statement, we will need all information from the previous escrow analysis, or, in the case of loans that have not been escrow analyzed, the information from the IEAS. (The IEAS is an estimate of escrow account activity from the time of the loan origination. It indicates a starting balance, payment amounts into and from the account, a description of those payments, and anticipated escrow account balance). The IEAS is a required document in the New Loan setup package, but it has not been received in all cases. Without the IEAS, the Short Year statement cannot be produced accurately, and will be in violation of RESPA.
Cenlar has created a new process to mitigate the risk of this RESPA violation. Beginning December 5th, a report will be produced and sent to you weekly (frequency may accelerate for higher loan volumes). This report will include loans in the following categories;
- Recent Payoffs
- Pending Payoffs
- Recent Service Transfers
- Pending Service Transfers
We are requesting that you review this loan listing, obtain the IEAS, and submit to us at email@example.com. Due to the potential serious repercussions, we ask that this report is reviewed and responded to promptly. We will also have a secondary escalation process for any loan that is within 30 days of the RESPA deadline.