Answer:
There are two different timing requirements when closing an escrow account.
If the customer requests that an escrow account be cancelled, then the Institution must provide and the customer must receive an escrow closing notice, three business days before the escrow account is closed. This means that if mailed to the customer, the account cannot be closed until the assumed receipt date, which is three business days after the disclosure is mailed, which includes all days except Sundays and legal holidays.
If the Institution has decided to close the escrow account, the customer must receive the Escrow Closing Disclosure no later than 30 business days before the escrow account is closed.
There are specific requirements for the content and format of the Escrow Closing Notice as outlined in 1026.20(e). To view a copy of the model form, please follow the following link:201403_cfpb_escrow-cancellation_H29.pdf
