Free escrow audit · RESPA / Regulation X
Your mortgage servicer is sitting on your money. Federal law says they can't.
Enter the numbers from your annual escrow statement. Our rules engine checks them against 12 C.F.R. § 1024.17 — the cushion cap, surplus refunds, shortage spreads, force-placed insurance — shows the dollars, and writes a Notice of Error your servicer must answer by law.
About 10 minutes. No account. Your name, address and loan number never leave your browser.
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Escrow audit
Most servicers re-figure your escrow once a year. Mistakes in that analysis — an oversized cushion, an inflated tax estimate, a surplus they never refunded, a lump-sum shortage demand — cost homeowners hundreds of dollars. We rebuild the analysis the way the regulation's Appendix E does and compare.
Coming next
PMI / MIP check
The Homeowners Protection Act makes private mortgage insurance end on a schedule — and lets you request removal earlier. We'll compute your dates from your loan and tell you if you're paying for insurance you no longer owe.
How the escrow audit works
- Enter your statement. Quick mode takes the totals printed on your annual escrow statement. Full mode takes the month-by-month bill schedule and independently recomputes what your servicer is allowed to hold.
- See the findings. Each finding shows the dollars, the rule it's based on, and how sure we are: violation (the math is unambiguous), likely error, or worth checking.
- Mail the letter. We draft a Notice of Error / Qualified Written Request citing 12 C.F.R. § 1024.35 and 12 U.S.C. § 2605(e). Once you mail it, we track the servicer's legal deadlines: acknowledge in 5 business days, fix or explain in 30.
Sample result
$1,000.00
estimated money owed or over-collected · $50.00/mo potential overpayment
- Violation Surplus of $300.00 not refunded 1024.17(f)(2)
- Likely error Homeowners insurance projected $600.00 too high 1024.17(c)(7)
- Worth checking Possible force-placed insurance 1024.37
The rules, in plain English
Regulation X (12 C.F.R. Part 1024) applies to virtually every mortgage servicer — small servicers included. Here's what the audit checks:
Cushion cap
The extra “cushion” a servicer keeps can be no more than one-sixth (about two months) of your yearly escrow bills — and your mortgage or state law can set a lower limit. The projected lowest balance of the year must be at or below that cap.
12 C.F.R. § 1024.17(c)(1)(ii), (c)(5), (d)(2)(ii)
Surplus refund
If the annual analysis shows a surplus of $50 or more and you are current (payments received within 30 days of the due date), the servicer must refund it within 30 days of the analysis date.
12 C.F.R. § 1024.17(f)(2)
Shortage repayment options
A shortage of one month’s escrow payment or more can only be left alone or spread over at least 12 months — never demanded as a lump sum. A smaller shortage may also be collected within 30 days.
12 C.F.R. § 1024.17(f)(3)
Annual statement timing
The servicer must analyze your account every year and send the annual escrow statement within 30 days after the computation year ends (with exceptions for loans in default, foreclosure, or bankruptcy).
12 C.F.R. § 1024.17(c)(3), (i); 12 U.S.C. § 2609(c)(2)(B)
Reasonable projections
Servicers must base next year’s estimate on the actual charge when it is known. Over-projecting a tax or insurance bill inflates both your monthly payment and the cushion.
12 C.F.R. § 1024.17(c)(7)
Late penalties on escrowed bills
If you are not more than 30 days behind, the servicer must pay your escrowed taxes and insurance on time — advancing its own money if needed. Penalties caused by late servicer payments are the servicer’s error.
12 C.F.R. § 1024.17(k)(1); § 1024.34(a); § 1024.35(b)(4)
Force-placed insurance
A servicer may not charge you for insurance it buys (“force-placed”) without a reasonable basis and two written notices. Once you show you had your own coverage, it must cancel within 15 days and refund the overlapping premiums and fees.
12 C.F.R. § 1024.37(b), (c), (g); § 1024.17(k)(5)
Payment arithmetic
Your new monthly escrow payment should be about 1/12 of the projected yearly bills plus any shortage spread. Anything more needs an explanation.
12 C.F.R. § 1024.17(c)(1)(ii)
Your right to a written answer
Send a written Notice of Error to your servicer's designated address and it must acknowledge it within 5 business days and correct the error or explain in writing within 30 business days (one 15-day extension allowed with notice). It can't charge you for responding, and it can't report the disputed payment to credit bureaus for 60 days.
12 C.F.R. § 1024.35(d), (e), (h), (i); 12 U.S.C. § 2605(e)
Rule text verified against the CFPB's published Regulation X, September 2026. State law or your mortgage can set stricter limits.
Get notified
We'll email you once when the PMI check launches, or when escrow statement season starts. No other mail.
Before you start
MortgageLeak is an educational tool, not a law firm, and this is not legal advice. Results depend on the numbers you enter; verify them against your statement. Findings marked “violation” mean the numbers you entered break the rule's math — your servicer may have facts we don't. For complex situations (foreclosure, bankruptcy, loan modification) talk to a HUD-approved housing counselor or an attorney.