The initial escrow statement is typically provided:

• A. At settlement (correct)
• B. At loan closing
• C. After the first 60 days
• D. Upon borrower request

Answer: (A)

The main idea here is that the initial escrow statement is issued when the loan is being finalized to set up the escrow account and show the estimated taxes and insurance that will be collected each month. Providing it at settlement ensures the borrower sees how much will be held in escrow and what their total monthly payment will include right as the loan closes. This timing is important because the escrow setup and the first-year estimates are part of closing the loan, so the borrower can budget accurately before funds are disbursed. After settlement, you’ll handle ongoing statements (like annual escrow analyses), but the initial statement itself is tied to establishing the escrow at closing.