Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is a Cushion or Reserve Requirement?

cushion requirement Reserve
0
Posted

What is a Cushion or Reserve Requirement?

0

Your loan documents may refer to a reserve, sometimes also called a “cushion”. This reserve requirement is allowed by federal and most state laws and acts as an additional safeguard to cover unanticipated disbursements or disbursements made before all of your payments have been made into your escrow account.

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.