What's the report called that a loan servicer gives to the borrower that explains an increase in hazard insurance or real estate taxes?

The report that a loan servicer provides to a borrower that explains an increase in hazard insurance or real estate taxes is known as the Annual Escrow Statement. This report is crucial because it details the amounts that have been paid from the escrow account for these expenses, along with any changes that may affect the borrower's monthly payments.

The Annual Escrow Statement serves to ensure transparency in how the escrow account is managed, providing a clear breakdown of payments made for property taxes and insurance. If there has been an increase in those costs, the statement would reflect the adjustments necessary to maintain adequate funding in the escrow account, thus impacting the borrower's monthly mortgage payment.

Understanding this document is essential for borrowers, as it helps them prepare for any changes in their future payments and provides insights into how their funds are being utilized.