RESPA Escrow Disclosure Requirements

The Initial Escrow Statement itemizes the estimated taxes, insurance premiums and other escrow items anticipated to be paid from the escrow account during the first twelve (12) months of the loan.  It lists the escrow payment amount and any required cushion.  Provided at settlement or within 45 days from closing.

The Annual Escrow Statement shows the projection of all escrow account deposits and payments for the next twelve (12) months as well as an actual history for the past twelve (12) months.  It also notifies the borrower of any shortages or overages in the account and the new mortgage payment amount effective as of the new computation year.  Provided within 30 days of the analysis date.

The Short Year Statement provides a history of the account since the last annual statement to the time of the short year statement, including the projections on the last escrow statement.  The short year statement is provided at the time of payoff or servicing transfer.