An escrow account is one that is established to hold separate funds for the purpose of paying bills such as homeowner's insurance and property taxes. HSBC collects the funds to be deposited into the account each month received with your monthly payment and then pays the bill for you when it comes due. This eliminates you having to come up with the additional cash when they are due. By taking the annual amounts charged for homeowner's insurance, property taxes and other annually paid items and dividing them by 12, the escrow department establishes a payment amount that is added to your monthly principal and interest payment. This spreads the cost of those items over 12 months, making it easier to budget those expenses.
For example, if your homeowner's insurance annual premium (charge) is $300, breaking that cost down over 12 months means that $25 will be added to your monthly payment amount to cover the cost.
When the bill comes due, HSBC has the funds available to pay it for you, since you've already placed the money in your escrow account through your monthly payment.
The escrow statement* explains how the monthly escrow portion of your payment was calculated, and provides estimates of your annual expected costs. You will receive an escrow statement each year if you have an escrow account.
Your Escrow Account
How are my real estate taxes paid?
If you have an escrow account, HSBC will receive your tax invoices and disburse the funds from your escrow account. Your monthly billing statement and year-end statement will display any amounts disbursed.
SPECIAL SITUATIONS: Supplemental, Interim and Added Assessment tax bills are not collected in your monthly escrow payment. Payment of these tax bills is your responsibility.
If you have an escrow account and you receive a regular tax bill directly from your taxing authority, please send your bill immediately to HSBC. It is important that we receive the bill immediately to avoid payment delays and penalties to your account. Please mail the tax bills to:
HSBC Bank USA, N.A.
Attention - Tax Department
P.O. Box 571858
Murray, UT 84157-1858
What about my homeowner's insurance premiums?
If you have an escrow account, HSBC will receive your insurance invoice and disburse the appropriate funds from your escrow account. Your monthly billing statement will display any disbursements. If you receive a bill from your insurance company, please forward it to us at the address below:
HSBC Bank USA, N.A.
It's Successors and/or Assigns
P.O. Box 48350
Doraville, Georgia 30362
Contact phone number: 866-473-6919
Fax number: 678-459-9142
State of New York Mortgage Agency
c/o HSBC Bank USA, N.A
Its Successors and/or Assigns (ISAOA)
PO Box 48350
Doraville, Georgia 30362
Please note: If you do not maintain an escrow account, maintenance of insurance coverage is required under the terms of your mortgage. If your homeowner's premium is not paid when due, it may result in the establishment of an escrow account as well as automatic coverage for your account at a potentially higher premium.
Changing insurance companies
Please notify us immediately of a change in insurance companies. If you fail to notify us of a change in coverage, we may pay your former insurance company. You must then obtain a refund from your former company, cancel your old policy and instruct HSBC to pay your new insurance company. Please do not cancel your policy until you have obtained new coverage.
Determining the amount of tax and insurance payments
HSBC does not control the amount of your taxes and insurance premiums. These amounts are determined by your taxing authority and insurance company.
Estimating sufficient funds in your escrow account
Your escrow account is analyzed at least once a year to ensure that your monthly deposit is sufficient to pay your upcoming tax and insurance bills. HSBC will then provide you with an annual escrow account disclosure statement showing how your new monthly mortgage payment was determined and when your new payment begins. The billing statement you receive for the effective month will reflect the new payment amount.
Calculating the amount needed for your monthly escrow deposit
Your total annual tax and insurance items are divided by 12 to determine the amount required for each monthly payment. The tax and insurance amounts are based on the actual amounts last paid. We may also collect an additional amount, up to 2 months or 1/6th of your estimated escrow payments, as permitted by law. Your monthly escrow payment may also include a shortage payment if identified in your yearly escrow analysis. View a sample escrow statement online*.
Shortages and overages in your account
After your escrow analysis is performed, HSBC will notify you of any shortage or surplus in your escrow account. If there is a shortage, we will provide you with options for repayment.
If your account has a surplus of $20 or more, and your account is in a current status, you will receive a check for the surplus amount. If the surplus is less than $20, we will apply it to your next escrow payment. You will see this reflected on your annual escrow account disclosure.
Escrow account requirements are not waived. You agreed to have an escrow account for taxes and insurance when you signed your mortgage contract. The escrow account was established to protect you and your property, as well as your lender.
Insurance losses on property
Because HSBC Bank USA, N.A. is listed as the mortgagee on your insurance policy, any loss proceeds checks you receive will be jointly payable to HSBC and to you. If the check is for less than $10,000, please forward the check, adjustor's report and contractor's estimate to our Insurance Department at the address below. We will endorse the check and return it to you. Once you have completed the repairs, you are required to send us the paid receipts for the repair work.
HSBC Bank USA, N.A.
Loss Draft Department 547
P.O. Box 47017
Doraville, GA 30362
Contact phone number: 888-229-5389
Fax number: 678-459-9779
Questions about your account
Contact our escrow department at
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