Which document is essential for ensuring borrower awareness of their rights regarding escrow accounts?

The document that is essential for ensuring borrower awareness of their rights regarding escrow accounts is the Notice of Right to Discontinue Escrow. This notice specifically informs borrowers about their ability to cancel or discontinue their escrow accounts when it is legally permissible. It outlines the conditions under which they may choose to stop using escrow for managing property taxes and insurance payments.

By providing this notice, lenders help ensure that borrowers fully understand their rights in relation to escrow accounts, promoting transparency and responsible borrowing. This awareness is crucial as it empowers borrowers to make informed decisions about their mortgage financing.

The other documents listed serve different purposes:

• The Loan Estimate provides borrowers with initial loan terms and estimated costs, but it does not specifically address escrow rights.

• The Closing Disclosure details the final terms of the loan and actual closing costs, which also does not focus on the borrower's rights regarding escrow accounts.

• The Notice of Right to Cancel is primarily relevant for certain types of transactions, specifically those that involve a right of rescission under the Truth in Lending Act, rather than addressing escrow rights directly.

Thus, the Notice of Right to Discontinue Escrow stands out as the most direct and focused resource for borrowers regarding their rights related to escrow accounts.