This extra amount is the cushion.. The Real Estate Settlement Procedures Act says that lenders can keep a maximum cushion of one-sixth of the total annual cost of items paid out of escrow. So if your taxes and insurance add up to $3,900 a year, your lender can keep a cushion of $650.Cushions are not overages.his extra amount is the cushion.. The Real Estate Settlement Procedures Act says that lenders can keep a maximum cushion of one-sixth of the total annual cost of items paid out of escrow. So if your taxes and insurance add up to $3,900 a year, your lender can keep a cushion of $650. Cushions are not overages.
Samples in periodicals archive: The Residential Condominium Building Association Policy (RCBAP) of the standard flood insurance policy insures residential condominium associations, and thus the building in which the unit is located. # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z. 1  Home.
The NFIP offers the following maximum limits for most flood insurance policies: 1  Building coverage can typically insure your residential building's structural elements up to $250,000, or your non-residential building at up to $500,000 2.