Whether or not a loan qualifies to have the escrows removed depends on a number of factors, including payment history, loan investor or insurer among other factors.
It’s important to remember that there are advantages to maintaining an escrow account, even if it’s not required. Maintaining an escrow account as part of your mortgage payment acts as a savings plan, and ensures that when the taxes or insurance come due, the funds have already been set aside.
What requirements must be met for me to remove escrow?
- The terms of the loan and applicable law must allow for escrow waiver.
- The loan must have met the minimum investor aging requirement:
- If the investor of the loan is Freddie Mac (FHLMC) the loan must have at least 6 months of aging.
- If the investor of the loan is Fannie Mae(FNMA) the loan must have at least 24 months of aging.
- Aging is defined as the time between today and either:
- The date of origination, or
- The completion date of a repayment plan, if applicable
- A written request, including the Fidelity Bank Loan number, has to be sent to Fidelity Bank.
- The Loan must be Current.
Factors which disqualify a loan from being eligible to remove the escrow
- The loan has received a prior mortgage loan modification.
- The loan is active in foreclosure or the debtor has filed bankruptcy.
- The loan was previously approved for an escrow waiver and you did not make all the payments for taxes and/or insurance timely, as required.
- The loan has been delinquent in the past 12 months immediately preceding the request.
- The loan has been delinquent more than 60 days in the 24 months.
- The principal balance of the mortgage loan is greater than or equal to 80% of the original appraised value.
- The loan has private mortgage insurance (PMI).
- The loan is insured by the Federal Housing Administration (FHA), USDA, or Veterans Affairs (VA).
- Flood Insurance is required for the loan.
- The loan is secured by investment property.
- The loan is currently in a mortgage repayment plan.
- The loan has lender-placed insurance added to it due to a lapse of insurance coverage or gap in insurance coverage.
- The loan is a first-time home buyers program.
- If the loan is a “Higher‐Priced Mortgage Loan” (loan with an annual percentage rate, or APR, higher than a benchmark rate), and at least five years have NOT elapsed since the loan closed.
- The escrow account was instituted as a result of delinquent property taxes.
- The loan has a negative balance in the escrow account.
What Should I Expect Once I Request Escrow Deletion
Once Fidelity Bank receives your request, we will review it to determine if the loan qualifies for escrow deletion. If the loan qualifies, you will be sent a notice confirming that your escrow account is being deleted and that the payment of taxes and insurance are your responsibility for the remainder of the loan. This notice will also provide a contact number, in the event you decide you wish to keep your escrow account. If we don’t hear from you, we will close the escrow account approximately 7-10 business days after the notice was sent. In the event your loan does not qualify for escrow deletion, Fidelity Bank will notify you in writing that we are unable to delete your escrow account.
Escrow Deletion Request Form
Email your completed form to:
Or mail to:
Fidelity Bank Mortgage
Attn: Mortgage Servicing Escrow,
PO Box 105075
Atlanta, GA 30348-5075
If you have any questions, please contact our Customer Service Department at 888-248-LION (5466), Option 6.