The Escrow Account Statement is a disclosure required by which act?

The Escrow Account Statement is a disclosure required by which act?

• A. RESAP
• B. TILA
• C. HOEPA
• D. None of the above

Answer: (A)

The Escrow Account Statement is a disclosure required under RESPA, the Real Estate Settlement Procedures Act. RESPA mandates an annual accounting of an escrow account (Section 10 disclosure) that shows all escrow deposits, payments for taxes and insurance, the current escrow balance, and whether there is a shortage or overage, plus the estimated future payments. This lets borrowers see exactly how their escrow funds are being used and helps ensure accuracy in disbursements. Truth in Lending Act and its HOEPA amendments deal with other loan disclosures—primarily the cost of credit, APR, and protections for high-cost mortgages—not the annual escrow accounting. So the escrow statement specifically aligns with RESPA.

The Escrow Account Statement is a disclosure required under RESPA, the Real Estate Settlement Procedures Act. RESPA mandates an annual accounting of an escrow account (Section 10 disclosure) that shows all escrow deposits, payments for taxes and insurance, the current escrow balance, and whether there is a shortage or overage, plus the estimated future payments. This lets borrowers see exactly how their escrow funds are being used and helps ensure accuracy in disbursements.

Truth in Lending Act and its HOEPA amendments deal with other loan disclosures—primarily the cost of credit, APR, and protections for high-cost mortgages—not the annual escrow accounting. So the escrow statement specifically aligns with RESPA.