Wells Fargo Sellers Guide 515.04 Escrow/Impound Accounts for Taxes, Insurance, and Guaranteed Rural Housing Annual Fee requires:
“Collection of one months’ worth of annual fee monthly payments at closing.”
Previously Wells Fargo required two months’ worth of USDA annual fee to be collected at closing, but then lowered it to one month in Newsflash C14-067.
Effective May 23, 2015, the default cushion number of months for the USDA annual fee for Wells Fargo loans in ConformX will be lowered from two months to one month. The cushion will default to one month only if the cushion is not already set.
May 15, 2015
Update: To clarify, the USDA annual fee cushion will default to one month for Wells Fargo if the cushion is not already set OR if the cushion is set to zero (0) months.
May 20, 2015