mi tax/ insurance impound/ escrow problem

[BriantheBanker]

What is the name of your state? MI

I'm a mortgage banker. A client of mine emailed me,
"I have a question that you may have an answer for. I will give some
background information first. My previous loan was with Countrywide.
After closing the new loan with your people, I got a check in the mail
from Countrywide which was from an escrow account. The problem is that
I didn't have Countrywide pay any of my taxes or insurance. I took care
of those myself. So for two years they had my money and shouldn't have.
Is there any laws about holding my money when they shouldn't have?
Should I contact an attorney?"

I want a couple other opinions before responding to him.

Any help would be appreciated.

Thanks in advance!

Brian Florian

 

[HUD-1]

Google "RESPA HUD"

 

[seniorjudge]

http://www.hud.gov/offices/hsg/sfh/res/respafaq.cfm

 

[lcannister]

What is the name of your state? MI

I'm a mortgage banker. A client of mine emailed me,
"I have a question that you may have an answer for. I will give some
background information first. My previous loan was with Countrywide.
After closing the new loan with your people, I got a check in the mail
from Countrywide which was from an escrow account. The problem is that
I didn't have Countrywide pay any of my taxes or insurance. I took care
of those myself. So for two years they had my money and shouldn't have.
Is there any laws about holding my money when they shouldn't have?
Should I contact an attorney?"

I want a couple other opinions before responding to him.

Any help would be appreciated.

Thanks in advance!

Brian Florian

YOU as a mortgage banker really do not know how to answer this question or how to find the answer with your own research? Unbelievable!

 

[danno6925]

YOU as a mortgage banker really do not know how to answer this question or how to find the answer with your own research? Unbelievable!

Useless reply.


My kneejerk reaction is to return any and all monies that don't belong to me after a real estate transaction. This will mitigate any headaches that are lying in wait. Also, you will want to notify the previous lender that they made an error somewhere. If the client definitely paid insurance/taxes on his own, then he should be able to tell by looking at one of his old mortgage statements for escrow account info. If there is escrow information on the statement, he should check with the municipalities to ensure his taxes weren't double paid. If they were not double-paid, and he's been paying them, where the hell is all of the tax money from the escrow account?

If there is no escrow info for taxes and insurance, he should return the check immediately, as this was likely a minor oversight.