Section 1050.830  Real Property Tax and Hazard Insurance Payments

Where servicing includes maintenance of an escrow (impound) account for payment of tax bills and hazard insurance premiums, the licensee shall make a good faith effort to comply with the following guidelines:  

a)         Tax bills received 30 days before discount or penalty dates should be paid on or before those dates;

b)         Hazard insurance premium bills received 30 days before the due date should be paid on or before the due date;

c)         To ensure accrual of sufficient funds to pay taxes and insurance premiums, a complete analysis of each mortgage escrow (impound) account shall be performed at least once every year.  No later than 30 days before the effective date of a change in payment, the customer shall receive the analysis, along with a plain English explanation of how the new payment amount has been calculated.

(Source:  Amended at 29 Ill. Reg. 14808, effective September 26, 2005)