Real Estate Law
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Have you contacted the bank since the payment went up after that one year period to ask why the payment hasn't returned to the $1470?
If so, what was their response?
Is your mortgage company local or are they a national lender?
Does the mortgage company escrow out for taxes as well as insurance?
If so do you know if your insurance and taxes have both gone up each year?
Ok, by law the mortgage company is only allowed to escrow out a certain amount of money each year to hold for taxes and insurance and if they go over that amount, they have to refund it to you or reduce your escrow payment amount.
Under the RESPA laws, there could be a couple of reasons why your servicer is charging more for your escrow account. First, your bills have gone up and the account changed to reflect that. The servicer could have changed the amount of cushion to the maximum amount allowed by RESPA. Check your statement from the servicer. You may also want to check your loan documents to figure out what is the appropriate cushion. If the mortgage loan documents are silent on the amount of the cushion or pre-accrual practices, then the RESPA "two month" limits apply, unless state law provides for a lower amount.
With that said, the only way to know exactly what happened is to contact the mortgage company and request an escrow breakdown that shows exactly what the payment goes to. They should be able to send you a chart that shows the disbursements and then how the escrow amounts build up over the year and then are paid out for the bills. That will determine what their maximum amount that they can withhold will be..