The Initial Escrow Account Disclosure - Business Purpose Only is required by Real Estate Settlement Procedures Act (RESPA) and provides borrower’s with an estimate of activity in an escrow account during the coming year based on payments anticipated to be made from the account.
This documentation is included with the loan package provided by Loan Doc Prep and is required when the loan is:
Secured by Real Estate AND
- In 1st lien position OR
- Not in 1st lien position but 1st lien holder is not escrowing for taxes or insurance
- Has monthly principal and interest payments
- Has a term greater than 1 year
Secured by a Mobile Home, Boat, or RV to be used as primary residence AND
- Has monthly principal and interest payments
- A term greater than 1 year
Is for Business Purpose AND
- Secured by real estate AND
- Has interest only payments OR
- Establishing an escrow account on an existing obligation that is not being renewed
If loan documents are signed with IMM eSign or eSign-Web, document are automatically transferred to the loan file. If all documents are wet signed, send to loan servicing in the designated bag.