Your Mortgage Servicer May Owe You Money — Here’s How to Check

Most Texas homeowners set up their escrow account and forget about it. That’s exactly how mortgage servicers end up sitting on your money.

Quick Take (1- minute read)

— Federal law requires your servicer to refund escrow surpluses of $50 or more

— Refunds are triggered by your annual escrow analysis

— Most homeowners never check — and some never receive what they’re owed

— This applies to any Texas homeowner with an escrow account

Source: Consumer Financial Protection Bureau (CFPB)

What Is an Escrow Account?

When you have a mortgage, your lender typically collects extra money each month — beyond your principal and interest — to cover property taxes and homeowner’s insurance.

That money sits in an escrow account. Your servicer pays those bills on your behalf when they come due.

The problem: lenders often collect more than they actually need.

Why Overages Happen

Your servicer estimates what your taxes and insurance will cost for the coming year. If those costs come in lower than estimated — or if your tax assessment dropped — the account builds a surplus.

That surplus is your money.

Texas homeowners who successfully protested their property tax appraisal are especially likely to have an escrow overage the following year — because their servicer was still collecting based on the old, higher estimate.

What the Law Requires

Under the Real Estate Settlement Procedures Act (RESPA), your mortgage servicer must:

— Conduct an escrow analysis once a year

— Notify you of any surplus

— Refund any surplus over $50 within 30 days

Surpluses under $50 can be applied to your next year’s escrow instead of refunded — but anything $50 and over must come back to you.

How to Check If You’re Owed Money

Step 1 — Find your annual escrow statement. Your servicer is required to send this once a year. Check your mail, email, or online account portal.

Step 2 — Look for a surplus line. The statement will show your projected costs vs. what was collected. A surplus means they collected more than needed.

Step 3 — Confirm the refund was issued. If your surplus was $50 or more, a check or deposit should have followed within 30 days.

Step 4 — If you never received it, contact your servicer directly. Request your escrow analysis and ask about any outstanding refund.

Don’t wait for them to bring it up. They won’t always.

One Thing to Watch

Some servicers apply your surplus toward next year’s escrow instead of issuing a refund — even when the surplus exceeds $50. That’s a RESPA violation.

If your servicer did this without your consent and your surplus was $50 or more, you can file a complaint with the CFPB.

Ever’s Take

Your mortgage payment includes more than just your loan.

Every month, a portion goes into an escrow account to cover your property taxes and homeowner’s insurance. Your servicer estimates those costs — and sometimes they estimate too high.

Once a year, they run the numbers. If they collected more than they needed, they owe you the difference — any surplus of $50 or more has to come back to you within 30 days.

That annual review is called your escrow analysis. It happens automatically — but the refund doesn’t always make it to you.

Pull your escrow statement. Look for a surplus. If it’s there and no check followed — ask for it.

It’s your money. It just needs a nudge to come back.