Changed Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering.

a. Requirements

VA does not require the lender to establish escrow accounts for the collection and payment of property taxes, hazard insurance premiums, and similar items.  However, it is the lender’s responsibility to ensure that these items are paid timely.

A lender who chooses to escrow for taxes and insurance must comply with applicable laws, including the Real Estate Settlement Procedures Act (RESPA).