308.04C

Surplus

Requirements

You must not maintain a surplus of more than 2 monthly T&I T&ITaxes or assessments that may become a Lien on the Property and insurance premiums. payments in the T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. .

Operating Procedures

If the T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. has a surplus of more than 2 monthly T&I T&ITaxes or assessments that may become a Lien on the Property and insurance premiums. payments, you must:

  • refund the Borrower BorrowerPerson who is the obligor per the Note. the amount of the surplus above the 2 monthly T&I T&ITaxes or assessments that may become a Lien on the Property and insurance premiums. payments; or
  • reduce the Borrower's Borrower'sPerson who is the obligor per the Note. required monthly T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. deposit to reduce the surplus to no more than 2 monthly T&I T&ITaxes or assessments that may become a Lien on the Property and insurance premiums. payments within 12 months.

You cannot refund any T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. surplus if the Borrower BorrowerPerson who is the obligor per the Note. or any other party has defaulted under any of the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. beyond any grace or cure period.