Escrow for Mortgages Leveraging an EB-5 Investment, and Why it is Important

Co-Authored by: Dinesh Goel, International Investors Mortgage & Reid Thomas, Chief Revenue Officer and Managing Director at JTC Americas

The majority of lenders in the US require an escrow account for first-time homeowners, regardless of where they are from, to ensure that the entire process goes smoothly. Having one that understands EB-5 is helpful, especially because most US lenders don’t understand the complexities of it.

For this reason, International Investors Mortgage has appointed JTC Americas (Formerly NES Financial) as the exclusive escrow administrator for their mortgage offerings that leverage EB-5 investments. JTC Americas’ EB-5 escrow solutions will provide third party administrative oversight of the EB-5 investment of the borrower until the return of capital from the EB-5 project, helping ensure that the interests of the EB-5 investors are secure in both the property and the EB-5 investment.

Known across the EB-5 industry for their transparent and compliant escrow and fund administration, JTC Americas will administer the mortgage escrow until the loan is repaid or refinanced. They are the key connection point between the EB-5 investor, the escrow holding bank, and, in many cases, the EB-5 project sponsor.

The Benefits of Escrow Administration for IIM Mortgages

An escrow runs seamlessly in the background of mortgage transactions, primarily due to the safety mechanisms put in place by the escrow administrator in partnership with the designated escrow bank and escrow agent, that together safeguard the interests of both the borrower and the lender.

The escrow bank holds the funds on behalf of an investor, while the agent holds a fiduciary role to oversee the funds being held by the escrow bank and the distribution of any proceeds in accordance with the terms of the escrow agreement. The escrow administrator provides services such as tracking, accounting, compliance monitoring, auditing, and reporting to the escrow agent and the investor.

One of the goals of the escrow administrator is to work with the stakeholders to help find the right balance in the escrow structure such that they meet the needs of both the lender and the investor, and help prevent any potential compliance issues with the mortgage loan, or the EB-5 process.

With the knowledge of EB-5 projects and regular interactions with project developers, International Investors Mortgage and JTC Americas provide comfort to lenders that industry leading best practices are being followed in the administration of the transaction.

JTC Americas also stays apprised of the return of capital by the EB-5 project. This enables them to provide independent oversight across all terms and conditions of the pledge of the EB-5 investment, and verify that all related transactions are compliant with them.

These factors provide an extra level of security for the borrower throughout the entire process.

Why JTC Americas is our Escrow Administrator

As the premier administrator of EB-5 investments, JTC Americas understands the EB-5 investment, as well as its structure, compliance, and complexities. A large number of EB-5 projects and investors already rely on JTC Americas for administration of their EB-5 investment process. Mortgage borrowers and lenders should feel added comfort in this fact, and can be confident that industry best practices are being followed throughout the process.

International Investors Mortgage has chosen JTC Americas (Formerly NES Financial) as our exclusive escrow administrator with the best interest of the EB-5 investor in mind.

Welcome to International Investors Mortgage LLC.

Information provided is for guidance purposes only and not to be construed as a loan solicitation. We, International Investors Mortgage LLC (IIM), do not offer or negotiate terms of owner occupied residential mortgage loans. We collaborate closely with a niche group of licensed Real Estate and Mortgage Professionals. Clients are introduced to licensed corporations that operate under Privacy Protection Banking Acts. We collaborate solely with regulated financial entities that adhere to State and Federal regulations. Our strategic partners understand the importance of client privacy protection during the entire loan approval process.

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