                                 CODE OF VIRGINIA

ESCROW ACCOUNTS (§ 6.2-1618)

A. All moneys required by a mortgage lender required to be licensed under this
chapter to be paid by borrowers in escrow to defray future taxes or insurance
premiums, or for other lawful purposes, shall be kept in accounts segregated
from accounts of the lender, and shall not be commingled with other funds of the
lender.

B. No licensed mortgage lender shall require any borrower to pay any moneys in
escrow to defray future taxes and insurance premiums, or for any other purpose,
in connection with a subordinate mortgage loan as referred to in Article 2
(&#xA7; 6.2-406 et seq.) of Chapter 4, except where escrows for such purposes
are not being maintained in connection with the mortgage loan superior to such
subordinate mortgage loan.

C. Mortgage lenders holding money in escrow for insurance premiums shall notify
the insurer in writing within 30 days of a change of the mortgage lender&#8217;s
billing address, or 60 days prior to the renewal date of the insurance policy,
whichever is later.

HISTORY: 1987, c. 596, § 6.1-423; 2001, c. 504; 2010, c. 794.