FNMA Servicing Guide B-1-01 — Administering an Escrow Account and Paying Expenses
FNMA Servicing Guide B-1-01 governs escrow account administration: monitoring status of escrow and related charges (taxes, hazard/flood insurance, MI premiums, ground rents, HOA assessments), timely payment before penalty/termination dates, maximum-discount payment timing, escrow-waiver no-solicitation rule, and MIP-escrow-may-not- be-waived rule. Fills FNMA Servicing B-1 chapter gap.
Verbatim regulatory text
Verbatim provisions from FNMA Servicing Guide B-1-01 — Administering an Escrow Account and Paying Expenses — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
FNMA Servicing Guide B-1-01 — Timely payment of escrow charges before penalty/termination
ensure the timely payment of all escrow and related charges before any applicable penalty or termination date, and make payments for escrow-related expenses early enough to take advantage of any discount period to obtain the maximum discounts allowed whenever funds are available in the escrow account.
FNMA Servicing Guide B-1-01 — No solicitation of borrower to waive escrow
The servicer must not solicit a borrower with an offer to waive the escrow account requirements but is authorized to evaluate a borrower’s request subject to the requirements in the following table.
FNMA Servicing Guide B-1-01 — MIP escrow may not be waived for monthly-premium loans
The servicer may not waive the individual escrow requirement for MIPs when the premiums are paid monthly.
FNMA Servicing Guide B-1-01 — Maintain accurate records on escrow and related charges
maintaining accurate records on the status of all escrow and related charges.
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