Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
Under the Mortgage Escrow Account Act, if a customer opts to establish a certificate-in-lieu account instead of an escrow account, would we have to notify the customer of their option to terminate the account once the loan is reduced to 65%? Would we have to release the pledge if requested after reducing the loan amount to 65%? – IBA Compliance Connection

Under the Mortgage Escrow Account Act, if a customer opts to establish a certificate-in-lieu account instead of an escrow account, would we have to notify the customer of their option to terminate the account once the loan is reduced to 65%? Would we have to release the pledge if requested after reducing the loan amount to 65%?

by

We believe that Section 5 (requiring lenders to notify borrowers of the option to terminate an escrow account) would apply when a borrower holds a time deposit account in lieu of an escrow account. While Section 5 mentions only “escrow accounts,” we believe that it was intended to also cover pledged accounts established under Section 6 as well, since those accounts are held by borrowers “in lieu” of the required escrow account; this option was added as a consumer-friendly measure to give consumers more choices, not to restrict their ability to cancel the escrow account under Section 5. 765 ILCS 910/6.