Appendix B to Part 22 - Sample Clause for Option to Escrow for Outstanding Loans
12:1.0.1.1.19.0.27.11.4 : Appendix B
Appendix B to Part 22 - Sample Clause for Option to Escrow for
Outstanding Loans Escrow Option Clause
You have the option to escrow all premiums and fees for the
payment on your flood insurance policy that covers any residential
building or mobile home that is located in an area with special
flood hazards and that secures your loan. If you choose this
option:
• Your payments will be deposited in an escrow account to be
paid to the flood insurance provider.
• The escrow amount for flood insurance will be added to the
regular mortgage payment that you make to your lender or its
servicer.
• The payments you make into the escrow account will accumulate
over time and the funds will be used to pay your flood insurance
policy when your lender or servicer receives a notice from your
flood insurance provider that the flood insurance premium is
due.
To choose this option, follow the instructions below. If you
have any questions about the option, contact [Insert Name of Lender
or Servicer] at [Insert Contact Information].
[Insert Instructions for Selecting to Escrow]
[80 FR 43244, July 21, 2015]