
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, October 27, 1994                   TAG: 9410280013
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-9   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

HOMEOWNERS MAY GET ESCROW REFUNDS

At least $1.5 billion will be returned to millions of U.S. homeowners who have been required to overpay their home-loan escrow accounts, federal housing officials said Wednesday.

The refunds will result from new government standards on amounts lenders require deposited in escrow accounts on federally insured home mortgages. Bankers said the number of homeowners getting refunds would be smaller than the government stated since many lenders already are operating under the new standards.

The new rule, effective April 27, 1995, will save $477 million a year in closing costs, according to the Department of Housing and Urban Development. Some home buyers could save as much as $250 in closing costs, HUD said.

HUD Secretary Henry Cisneros said the new rule bars lenders from holding back more money than necessary.

Escrow accounts are created to hold funds for property taxes, insurance and other loan-related charges, to ensure they are paid on time.

by CNB