Section 17 of the RESPA/HUD regulations imposes escrow account documentation and recordkeeping requirements, among other requirements, relating to real estate mortgage transactions. Lenders on such loans must (1) “keep records, which may involve electronic storage, microfiche storage, or any method of computerized storage, so long as the information is easily retrievable, reflecting the servicer’s handling of each borrower’s escrow account” and (2) “maintain the records for that account for a period of at least five years.” 12 CFR 1024.17(l). After conducting an analysis to determine the escrow amount, lenders must submit initial escrow account statements to borrowers at settlement or within forty-five days of settlement, if the account is a condition of the loan. 12 CFR 1024.17(g), (h). Lenders must provide annual escrow account statements to borrowers within thirty days after the end of the account computation year. 12 CFR 1024.17(i). Lenders must also notify borrowers if there is a shortage in the escrow account and must conduct an escrow account analysis before seeking reimbursement from a borrower for a shortage not caused by the borrower’s default. 12 CFR 1024.17(f)(5); (f)(1)(ii).

In addition, Illinois laws impose several requirements related to escrow accounts. The Mortgage Escrow Account Act requires lenders on residential, single-family mortgages to notify borrowers of their right to terminate the escrow when they have paid sixty-five percent of the loan balance. 765 ILCS 910/5. Lenders must also notify borrowers when the borrower makes a tax payment either within forty-five days of making the payment or on any annual statement, including those required by federal law, by any means (including by telephone and e-mail). 765 ILCS 910/15. In addition, borrowers may request an itemized statement following an increase in escrow payments for taxes or insurance on the property under the Mortgage Payment Statement Act. 765 ILCS 920 et seq. Another relevant law is the Mortgage Tax Escrow Act, which limits the amount of money that a lender can require a borrower to maintain in a tax escrow account. 765 ILCS 915 et seq.