If there is a surplus in a borrower's escrow account greater than $50, what must the lender do?

When there is a surplus in a borrower's escrow account that exceeds $50, the lender is required to send the borrower a check for the surplus. The regulation mandates that this payment must be made within 30 days of the surplus being identified. This is in place to ensure that borrowers are given back funds that are no longer needed for escrow payments, allowing them better control over their finances. By providing this refund within a specified timeframe, the lender demonstrates compliance with federal guidelines aimed at protecting borrowers' interests.

The other options suggest either an inaccurate time frame for the disbursement or alternative actions that do not align with the regulatory requirements. The clear obligation to refund the surplus within 30 days ensures that borrowers are treated fairly in the management of their escrow accounts.