How often must the aggregate accounting escrow be reviewed?

The correct answer is based on regulatory requirements for escrow accounts, specifically under the Real Estate Settlement Procedures Act (RESPA). Aggregate accounting is a legal requirement for lenders that mandates a review of the funds in escrow accounts to ensure that borrowers are not overcharged or undercharged for costs associated with property taxes, insurance, and other escrowed items.

According to RESPA, lenders must conduct an aggregate accounting analysis of escrow accounts every 12 months. This review ensures that the amount collected for escrow does not exceed the permissible limits and allows for adjustments to be made as necessary. By reviewing the accounts annually, lenders can maintain compliance with federal regulations and ensure that borrowers are being charged fairly based on their actual services rendered.

Other options suggest frequencies that do not align with the established guidelines. For instance, reviewing the accounts every six, eighteen, or twenty-four months would either not provide adequate oversight or would be redundant compared to the required annual review. Therefore, the requirement for a 12-month review cycle ensures proper management and transparency of escrow accounts, which is crucial for protecting consumer interests.