What is an escrow agent?

A mortgage escrow agent is an independent third party, a person or company that manages the escrow account to facilitate the loan closing.  The escrow agent acts for both the buyer and the seller according to their instructions, safeguarding certain legal documents and funds in a transfer of real property until the specified performance is completed. 

Generally, the escrow agent participates at the end of the mortgage process, the loan-closing stage.   The escrow agent works to aid in the closing of the loan, ensuring that all the buyer’s and seller’s conditions have been met. 

 

An escrow agent’s duties include:

• Requesting a title search
  
• Ensuring that the necessary process is followed to clear the title
  
• Satisfactorily executing escrow instructions
  
• Coordinating required insurance coverage, fee requirements
  
• Recording appropriate documents
  
• Holding funds and documents for closing
  
• Obtaining properly signed and notarized documents
  
• Consultation with clients explaining documents for signature
  
• Providing copies of properly executed documents
  
• Preparing final closing statement
  

Mortgage escrow accounts are usually set up for the purpose of managing on-going property related obligations such as taxes, insurance, and other fees, ensuring sufficient available funds and timely payment.   A mortgage servicer will handle the management of the mortgage escrow.