No, the Chase customer service representative (CRS) was incorrect about RESPA and escrow accounts, but his or her misinformation is irrelevant for the purposes of your question.
First, some background information about the Real Estate Settlement Procedures Act (RESPA), which took effect January 1, 2010. The U.S. Department of Housing and Urban Development (HUD) describes RESPA on its Web site thusly: "RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD."
According to the RESPA FAQs About Escrow Accounts for Consumers, an escrow account is not required under RESPA. Therefore, that portion of what the CSR told you was an incorrect statement of law.
However, the mortgagee is allowed to require an escrow account as a condition of you, the mortgagor, doing business with it. That is allowed under RESPA. Therefore, the CSR telling you that you need to refinance to lift the escrow account requirement is probably true, if that is a condition of your mortgage.
You may want to consider refinancing. See the Bills.com resource Refinance Rates to learn more about refinancing your mortgage.
I hope this information helps you Find. Learn & Save.