Many banks are not properly managing escrow accounts. And the CFPB allowed a small servicer exemption when they required banks to escrow for all loans if the bank “required” escrow before 2012. Many trainers concluded early on this meant if you had the ability to escrow for HPML loans, thus all banks had to have escrows and later the CFPB clarified what they meant, not all banks had to escrow. If you had only escrowed because a loan was a higher priced mortgage, then you did not have to offer escrowing to all borrowers, if you fit the definition of a small servicer.
Be sure you aren’t making work for yourself. Escrows provide for potential fair lending issues, as well as RESPA violations, are you sure you want to offer them if you don’t have to?
Voluntary escrows: So if you offer voluntary escrow accounts, consider how you track them and document them. They are not covered by RESPA rules, if they are voluntary. Great opportunity here to offer the service without additional compliance risk.
You can contact me for more information. I would be interested to hear your feedback.