Which of the following scenarios is a RESPA violation?

The scenario that represents a violation of the Real Estate Settlement Procedures Act (RESPA) involves the lender requiring a borrower to escrow an excessive amount for tax and insurance payments. RESPA regulates the amount that can be held in escrow accounts, particularly in relation to the borrower's monthly payments and any required cushion.

In this case, the lender is requiring a borrower to escrow $2000 for monthly tax and insurance payments of $100. This amount significantly exceeds the permissible limits set by RESPA, which allows for a cushion of only up to one-sixth of the total estimated annual tax and insurance amount (approximately two months' worth of payments, which in this example would be no more than $200). Therefore, mandating a $2000 escrow clearly surpasses what is allowable under RESPA guidelines, distinguishing it as a violation.

The other scenarios provided do not constitute violations. Receiving an annual escrow statement with an overpayment and a check is within the rules set by RESPA, as is receiving a notification of a shortage with instructions on how to address it. Both represent normal communication and adjustment processes between a lender and borrower regarding escrow accounts in compliance with RESPA requirements. The cushion amount in the other scenario is also in line with what RESPA allows