12 CFR §1024.34 — Timely escrow payments and treatment of escrow account balances
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.
Verbatim regulatory text
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) — Timely escrow disbursements required
(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) .
12 CFR §1024.34(b)(1) — Refund of escrow balance within 20 days of payoff
(b) Refund of escrow balance —(1) In general. Except as provided in paragraph (b)(2) of this section, within 20 days (excluding legal public holi days , Satur days , and Sun days ) 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 .