Vermont passed a bill amending escrow account requirements with respect to mortgage loans secured by residential real property occupied by the borrower. Under the bill, a lender or servicer must annually conduct an escrow account analysis to determine the borrower’s monthly escrow account payments for the next computation year. The bill also requires a lender or servicer to conduct an escrow account analysis, recalculate the borrower’s monthly escrow payment, and notify the borrower of any change to the borrower’s payment in the event the lender or servicer receives a revised property tax bill that reduces the borrower’s property taxes. In addition, the bill amends the amount of reserves that may be maintained in an escrow account and amends requirements with respect to the annual escrow account statement. The bill becomes effective July 1, 2017.
See Vermont State Legislature website for the full text of the Statutes
