Federal Mortgage Law · 24% of the SAFE examhard
Correct answer: Because the surplus exceeds $50, the servicer must refund the excess amount to the borrower within 30 days of the analysis
Under RESPA Section 10, after completing an annual escrow analysis, if the servicer determines there is a surplus, the handling depends on the amount: if the surplus is less than $50, the servicer may retain it; if the surplus is $50 or more, the servicer must refund the amount to the borrower within 30 days of completing the analysis. Since $310 exceeds $50, the servicer must refund this amount within 30 days. "The servicer may retain the entire $310 as it falls..." is partially right in outcome but wrong on the rule — the $50 threshold matters. "The servicer must immediately refund the entire $310..." is incorrect because $310 exceeds the cushion permitted under Section 10 and the $50 retention threshold. "Because the surplus exceeds $50, the servicer must r..." (applying to future payments) is not the RESPA-required treatment for a surplus of $50 or more.
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