This document is given pursuant to Cal. Civ. Code § 2954(a) (West 2012) and contains a section where the borrower elects either to establish a voluntary impound account for the payment of taxes and insurance or to pay for such charges directly.
Due to concerns that the language of this section may be too broad and lead the borrower into believing that the account will cover all taxes, including ones that they are required to pay directly (e.g. supplemental taxes), we will be adding clarifying language to the election of establishment of the impound account, so that this election is as follows:
“Establish an impound account which will provide for monthly payments used for the payment of property taxes, hazard insurance premiums and other applicable charges related to the Property. I/We understand that the types of charges that will be collected are limited to the terms mutually agreed to by applicable parties to the loan and that this election does not necessarily extend to all charges, such as supplemental taxes, for which I/We may be responsible for paying directly.”
This change will take effect on March 12, 2013. If you have any questions or concerns about this update, please contact Client Support at 1.800.497.3584.
March 04, 2013