How much escrow can a bank keep?
Under guidelines established in 1997 by the Department of Housing and Urban Development, mortgage lenders and servicers can require monthly escrow contributions equal to one twelfth of the total property tax, insurance premiums and other charges agreed upon. In addition, the institution may escrow an additional one sixth of this total as a cushion against unexpected increases in the charges.
Contact: Consumer Representative
Phone: 1 800 334 3360
or Fax: 1 212 618 6570