North Dakota passed a bill amending escrow requirements with respect to surplus escrow funds. Under the bill, a servicer that maintains an escrow account in connection with a residential mortgage that contains a surplus amount ($50 or more excluding the escrow cushion) must provide written notice of the surplus amount to the borrower, and refund the surplus amount to the borrower. Both the notice and the refund must be provided to the borrower within 30 calendar days following the end of the escrow account computation year. Previously, the requirements only applied to junior lien mortgage loans, and the borrower had the right to elect whether to have a refund provided or to have the surplus funds retained in the escrow account. The bill becomes went into effect August 1, 2023.
Click to view the North Dakota Senate Bill 2263: https://www.tenaco.com/wp-content/uploads/2023/08/ND-SB-2263-04-14-23.pdf
