When must a servicer provide the initial escrow account statement?

A servicer must provide the initial escrow account statement within 45 calendar days of establishing the account. This requirement ensures that borrowers are informed about the funds that are being held in their escrow account, which typically covers costs such as property taxes and homeowners insurance. By providing this statement in a timely manner, the servicer helps the borrower understand how their payments are applied and what the expected disbursements from the account will be, promoting transparency and assisting the borrower in budgeting appropriately.

Delivering this information within the specified timeframe allows borrowers to stay informed about how their escrow account functions and ensures compliance with regulatory requirements set forth by the CFPB, ultimately enhancing borrower trust and satisfaction.