(1) A mortgage company shall, conspicuously and specifically, disclose to each borrower all contractual provisions relating to reserve accounts, impound accounts, escrow accounts, or any other account maintained for the borrower in order to pay for property taxes, property insurance or private mortgage insurance. (2) A mortgage company shall not keep more than one hundred twenty per cent (120%) of the amounts necessary on an annual basis to pay expected insurance, taxes or other agreed charges. Upon written notice by a borrower to the director and the mortgage company that reserves being required are excessive, the mortgage company must, within thirty (30) days, either refund the excess or explain to the borrower and the director why the amounts being required are believed to be reasonable and necessary. If, after notice of hearing under chapter 52, title 67 , Idaho Code, the director determines that the reserve account, impound account, escrow account or any other similar account maintained for a borrower is not reasonable, the director may order the mortgage company to reduce its reserve requirements for such accounts. In any proceeding under this section the burden shall be upon the mortgage company to prove that the amounts required for such reserve accounts are based upon actual and reasonably anticipated charges.
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