6.2-1618 - (Effective October 1, 2010) Escrow accounts. - Virginia Statutes

§ 6.2-1618. (Effective October 1, 2010) Escrow accounts.

A. All moneys required by a mortgage lender required to be licensed underthis chapter to be paid by borrowers in escrow to defray future taxes orinsurance premiums, or for other lawful purposes, shall be kept in accountssegregated from accounts of the lender, and shall not be commingled withother funds of the lender.

B. No licensed mortgage lender shall require any borrower to pay any moneysin escrow to defray future taxes and insurance premiums, or for any otherpurpose, in connection with a subordinate mortgage loan as referred to inArticle 2 (§ 6.2-406 et seq.) of Chapter 4, except where escrows for suchpurposes are not being maintained in connection with the mortgage loansuperior to such subordinate mortgage loan.

C. Mortgage lenders holding money in escrow for insurance premiums shallnotify the insurer in writing within 30 days of a change of the mortgagelender's billing address, or 60 days prior to the renewal date of theinsurance policy, whichever is later.

(1987, c. 596, § 6.1-423; 2001, c. 504; 2010, c. 794.)