US Laws, Codes, Statutes & Cases

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 28
                              MORTGAGE COMPANIES
    26-2807.  RESERVE ACCOUNTS. (1) A mortgage company shall, conspicuously
and specifically, disclose to each borrower all contractual provisions
relating to reserve accounts, impound accounts, escrow accounts, or any other
account maintained for the borrower in order to pay for property taxes,
property insurance or private mortgage insurance.
    (2)  A mortgage company shall not keep more than one hundred twenty per
cent (120%) of the amounts necessary on an annual basis to pay expected
insurance, taxes or other agreed charges. Upon written notice by a borrower to
the director and the mortgage company that reserves being required are
excessive, the mortgage company must, within thirty (30) days, either refund
the excess or explain to the borrower and the director why the amounts being
required are believed to be reasonable and necessary. If, after notice of
hearing under chapter 52, title 67, Idaho Code, the director determines that
the reserve account, impound account, escrow account or any other similar
account maintained for a borrower is not reasonable, the director may order
the mortgage company to reduce its reserve requirements for such accounts. In
any proceeding under this section the burden shall be upon the mortgage
company to prove that the amounts required for such reserve accounts are based
upon actual and reasonably anticipated charges.