What amount surplus in an escrow account requires the lender to send a check to the borrower?

In the context of mortgage escrow accounts, federal regulations stipulate that if the surplus in an escrow account exceeds a specific amount, the lender is required to refund that excess to the borrower. The correct threshold for this refund is set at $50. When the surplus amount in the escrow account reaches or exceeds this limit, borrowers must be issued a check for the excess funds. This policy is designed to protect borrowers by ensuring they do not overpay into their escrow accounts, which are typically used for property taxes and insurance payments.

Understanding this regulation is crucial for mortgage loan officers, as it directly impacts the financial interactions between lenders and borrowers and fosters good customer relations through transparency in financial practices.