Escrow analysis schedules are generally determined by federal law and mortgage servicers rather than specific state regulations.
The Real Estate Settlement Procedures Act (RESPA) is the key federal law governing escrow accounts.
Under RESPA, mortgage servicers are required to conduct an escrow analysis at least once a year for all borrowers with escrow accounts, regardless of the state.
However, there can be some variations in escrow practices, such as how property taxes and insurance are paid, which can affect when the analysis is done.
While RESPA mandates annual escrow analysis, certain factors like local property tax schedules and insurance renewal dates could indirectly influence when your servicer conducts the analysis.
Here are a few key points about escrow analysis schedules:
General Schedule:
- Annual Review: All mortgage servicers conduct an annual escrow analysis, as required by federal law.
- Local Tax Payment Schedules: The timing of property tax payments (which can be due annually, biannually, or quarterly) may influence when the servicer conducts the analysis.
- Insurance Premiums: If your homeowners or other required insurance renews at a specific time of year, the analysis might be done around that period.
Possible Variations by Region:
- States with Biannual or Quarterly Property Tax Payments: In states where property taxes are collected multiple times per year (e.g., California, New Jersey), the escrow analysis may be scheduled around those payment cycles.
- Annual Tax Payments: In states where property taxes are paid once a year (e.g., Texas, Alabama), the escrow analysis often coincides with the annual tax payment due date.
Escrow Payment Cycles by State:
- California: Property taxes are paid in two installments (November and February), so an escrow analysis may be done after the second payment.
- New York: Property taxes vary by county and municipality, so timing for escrow analysis might align with the local tax schedule.
- Texas: Property taxes are due annually, typically by January 31, which may prompt an escrow analysis early in the year.
Timing of Analysis:
Your mortgage servicer usually provides a statement once the analysis is complete, which details whether there’s a shortage or surplus in your escrow account.
You will typically receive this statement 30 to 45 days after the analysis is performed.
How to Find Your Escrow Schedule:
- Contact Your Mortgage Servicer: The specific schedule for escrow analysis depends on your mortgage servicer’s practices and the timing of local tax or insurance payments. They should be able to provide you with the details about when your escrow analysis will be conducted.
Federal Requirements:
- Under RESPA, servicers are required to provide borrowers with an Escrow Account Statement at least once every 12 months.
In summary, while the federal government mandates an annual escrow analysis, the actual timing depends largely on local factors like property tax and insurance payment schedules, which may vary by state or even county.