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During the course of the loan, Section 10 of RESPA prohibits a lender from charging excessive amounts for the escrow account.
Each month the lender may require a borrower to pay into the escrow account no more than 1/12 of the total of all disbursements payable during the year, plus an amount necessary to pay for any shortage in the account.
In addition, the lender may require a cushion, not to exceed an amount equal to 1/6 of the total disbursements for the year. ...
[Table: Escrow Cushion Limitations]
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