12 CFR §1024.34 — Timely escrow payments and treatment of escrow account balances

reg-x-1024-34

Regulation X §1024.34 requires (a) timely escrow disbursements on or before the deadline to avoid a penalty per §1024.17(k), and (b) refund of any remaining escrow balance within 20 days (excluding legal public holidays, Saturdays, and Sundays) of payoff.

This register: .xlsx .csv

Verbatim regulatory text (2)

Verbatim provisions from 12 CFR §1024.34 — Timely escrow payments and treatment of escrow account balances — 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.

12 CFR §1024.34(a)

(a) Timely escrow disbursements required. If the terms of a mortgage loan require the borrower to make payments to the servicer of the mortgage loan for deposit into an escrow account to pay taxes, insurance premiums, and other charges for the mortgaged property, the servicer shall make payments from the escrow account in a timely manner, that is, on or before the deadline to avoid a penalty, as governed by the requirements in § 1024.17(k).

Source: 12 CFR §1024.34(a) · source URL · snapshot e1f7dc72b7fb8fd7

12 CFR §1024.34(b)

(b) Refund of escrow balance—(1) In general. Except as provided in paragraph (b)(2) of this section, within 20 days (excluding legal public holidays, Saturdays, and Sundays) of a borrower's payment of a mortgage loan in full, a servicer shall return to the borrower any amounts remaining in an escrow account that is within the servicer's control. (2) Servicer may credit funds to a new escrow account. Notwithstanding paragraph (b)(1) of this section, if the borrower agrees, a servicer may credit any amounts remaining in an escrow account that is within the servicer's control to an escrow account for a new mortgage loan as of the date of the settlement of the new mortgage loan if the new mortgage loan is provided to the borrower by a lender that: (i) Was also the lender to whom the prior mortgage loan was initially payable; (ii) Is the owner or assignee of the prior mortgage loan; or (iii) Uses the same servicer that serviced the prior mortgage loan to service the new mortgage loan.

Source: 12 CFR §1024.34(b) · source URL · snapshot e1f7dc72b7fb8fd7

Get this regulation in your AI window

Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.

Open in Claude Open in ChatGPT

Open in Claude shows the one-time setup: paste one address, no account with us. Open in ChatGPT asks ChatGPT about this page, with no setup. Either way it’s free.

Get notified if this rule changes

One email when 12 CFR §1024.34 — Timely escrow payments and treatment of escrow account balances changes: what changed, the new verbatim text, and the effective date. Nothing else.

Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.

Source of record: https://claudeforcompliance.com/regs/reg-x-1024-34/ · register reg-x-1024-34 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.