What must happen if there is an overage on the escrow analysis?

When an escrow analysis reveals an overage, meaning there are excess funds in the escrow account, the lender is required to take specific actions according to regulations. If the overage is more than $50, federal law mandates that this amount must be returned to the borrower within 30 days. This requirement is designed to protect consumers, ensuring that they are not held accountable for fees that exceed what is necessary for paying property taxes, homeowners insurance, and other escrow items. Thus, the correct option reflects the legal obligation for lenders to refund these excess funds to borrowers in a timely manner. Keeping excess funds would not adhere to the principle of fairness and accountability laid out in consumer protection laws.