We believe that the notice requirement in Section 5 of the Act applies only to an escrow account set up to pay property taxes. 765 ILCS 910/5. This is because “escrow account” is defined in the Act as an account “out of which the lender pays the taxes on the property covered by the mortgage,” and there is no mention of other escrowed items, such as insurance premiums, in the definition. 765 ILCS 910/2(a).
Does the Mortgage Escrow Account Act requirement that we notify borrowers when the loan principal is down to 65% apply just to the property tax escrow, or does that apply to everything in the escrow account?
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