Under the rule, the amount of escrow funds that
may be collected at settlement or upon creation of
an escrow account is restricted to an amount
sufficient to pay charges, such as taxes and
insurance, that are attributable to the period from
the date such payments were last paid until the
initial payment date. Throughout the life of an
escrow account, the servicer may charge the
borrower a monthly sum equal to one-twelfth of the
total annual escrow payments that the servicer
reasonably anticipates paying from the account.
In addition, the servicer may add an amount to
maintain a cushion no greater than one-sixth of the
estimated total annual payment from the account