The Official Website of the South Carolina State Housing Finance & Development Authority


Follow SCStateHousing on Twitter

Log into MySCEmployee

Fair Housing Fair Housing Violence Against Women Act
Click Here for more information on USDOJ and Violence Against Women
Escrow

Escrow

The Purpose of an Escrow Account

Some mortgage contracts have an impound, or escrow, account. SC State Housing is obligated, under the terms of your mortgage, to collect and maintain this account for real estate taxes, insurance and certain other expenses connected with your home. This escrow provision cannot be waived.

How Your Account Works
Each mortgage payment includes an amount that is deposited to your escrow account. Usually the deposited amount represents 1/12 of the annual payments for your property taxes and insurance premiums. These property taxes and premiums are paid from the escrow account as they become due. In effect, an escrow account serves as a budget plan—making sure your funds are available as they are needed.

Projected Annual Disbursements: This is the total projected amount that SCSHFDA will pay on your behalf towards property tax, Federal Housing Administration (FHA) or private mortgage and hazard insurance.

Real Estate Settlement Procedures Act (RESPA): This is the federal guideline to assist mortgage-servicing organizations in the collection and distribution of escrow funds. RESPA regulates the maximum amount of escrow money that mortgage servicers may collect and hold in an escrow account. Mortgage servicers can collect additional escrow payments (up to two months’ worth) from borrowers to prevent escrow balances from dropping below a certain amount.

Escrow Shortage: If increases in escrow items result in a shortage of required funds, repayment of an escrow shortage occurs with the next 12 payments (each payment will equal the shortage divided by 12). You can also pay this shortage in full by check or money order. Please identify the check as "escrow shortage." Include your loan number and mail it to SC State Housing, Attn: Mortgage Servicing Department, 300-C Outlet Pointe Boulevard, Columbia, SC 29210.

Escrow Surplus: If your annual analysis shows surplus funds in your account and if this excess is greater than $50, we will send a refund check to you. If the surplus is less than $50, we will decrease your next 12 monthly payments by 1/12 of the surplus amount.