12 C.F.R. § 1024.34

Timely escrow payments and treatment of escrow account balances

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(a) Timely escrow disbursements required. If the terms of a mortgage loan require the borrower to make payments to the servicer of the mortgage loan for deposit into an escrow account to pay taxes, insurance premiums, and other charges for the mortgaged property, the servicer shall make payments from the escrow account in a timely manner, that is, on or before the deadline to avoid a penalty, as governed by the requirements in § 1024.17(k).

(b) Refund of escrow balance—(1) In general. Except as provided in paragraph (b)(2) of this section, within 20 days (excluding legal public holidays, Saturdays, and Sundays) of a borrower's payment of a mortgage loan in full, a servicer shall return to the borrower any amounts remaining in an escrow account that is within the servicer's control.

(2) Servicer may credit funds to a new escrow account. Notwithstanding paragraph (b)(1) of this section, if the borrower agrees, a servicer may credit any amounts remaining in an escrow account that is within the servicer's control to an escrow account for a new mortgage loan as of the date of the settlement of the new mortgage loan if the new mortgage loan is provided to the borrower by a lender that:

(i) Was also the lender to whom the prior mortgage loan was initially payable;

(ii) Is the owner or assignee of the prior mortgage loan; or

(iii) Uses the same servicer that serviced the prior mortgage loan to service the new mortgage loan.

Notes of Decisions

Cited in 9 cases (6 in the last 5 years), 2019–2025 · leading case: Richards v. Servis One, Inc..

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Richards v. Servis One, Inc. (D. Md. 2021). · cites it 11× “§§ 2605 (g), 2605(k)(1), and the following regulations: 12 C.F.R. §§ 1024.34 (a), and 1024.38(b)(1)(i), (b)(1)(iv), (b)(4)(i), and (c).”

Crockett v. Nationstar Mortg. LLC d/b/a Mr. Cooper (Bankr. D.C. 2020). · cites it 5× “(3) 12 C.F.R. § 1024.34 12 C.F.R. § 1024.34 is titled “Timely escrow payments and treatment of escrow account balances.”

Carter v. CrossCountry Mortg., Inc., an Ohio Corp. (E.D. Mich. 2019). · cites it 3× “17 (c)(2)-(3), (f), (g), and (k), 12 C.F.R. § 1024.34 , and 12 C.F.R. § 1024.”

Washington v. Nationstar Mortg. LLC (N.D. Ohio 2023). · cites it 2× “12 C.F.R. § 1024.34 . When it comes to the refund of the escrow balance, the regulation states: “within 20 days .”

Klinkman v. Truist Bank (M.D. Fla. 2023). “12 CFR § 1024.34 (emphasis added). Plaintiffs claim that Defendant breached its duty to timely pay insurance premiums out of the escrow account not once, not twice, but three times, resulting in them being uninsured when Hurricane Ian struck.”

Hutten v. Specialized Loan Servicing LLC (E.D.N.C. 2023). “6 The court also construed plaintiff’s deliberate miscalculation theory as a claim under § 2605(g), RESPA’s administration of escrow accounts provision, and its implementing regulation at 12 C.F.R. § 1024.34 . However, the court quickly dispenses with that claim because a…”

Matlock v. Roundpoint Mortg. Servicing Corp. (M.D. Tenn. 2020). “12 C.F.R. § 1024.34 (a) (emphasis added).”

Mongiello v. HSBC Bank USA NA (S.D.N.Y. 2025). “33 (a); failure to refund escrow balance pursuant to 12 C.F.R. § 1024.34 (b); and failure to timely respond to a notice of error and to correct said error pursuant to 12 C.”

Wilson v. Freedom Mortg. Corp. (E.D. Ky. 2025). “36 (c)(1), did not pay agreed upon taxes, insurance premiums, or other charges, see 12 C.F.R. § 1024.34 (a), and failed to refund her escrow balance, see 12 C.”

— 12 C.F.R. § 1024.34(a) — 1 case

Richards v. Servis One, Inc. (D. Md. 2021). “§§ 2605 (g), 2605(k)(1), and the following regulations: 12 C.F.R. §§ 1024.34 (a), and 1024.38(b)(1)(i), (b)(1)(iv), (b)(4)(i), and (c).”

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