When must an initial escrow account disclosure statement be delivered?

An initial escrow account disclosure statement must be delivered at closing or within 45 calendar days of closing. This timing requirement is set forth by federal regulations to ensure that borrowers receive important information regarding their escrow accounts. The disclosure provides details about the amounts being collected for escrow purposes, such as property taxes and insurance, and outlines how the funds will be managed throughout the loan term.

Providing this information promptly helps borrowers understand their financial obligations and how their escrow account will function, fostering transparency in the lending process. The 45-day timeframe allows lenders to ensure that the borrower has a thorough understanding of the escrow components associated with their mortgage after closing.

The options indicating shorter or longer timeframes do not align with these regulatory requirements.