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ESCROW ANALYSIS

Function
To compute loan escrow amounts to be included in the monthly payment.  Several escrow items may be entered per loan with varying amounts and dates.  This report may then be printed and once approved, posted to the Loan Master, automatically updating the escrow 1 amount and payment amount.  Once saved, the Escrow Analysis may be later retrieved and edited. 


Operating Instructions

Loan ID:                     
Select the appropriate loan from the combo box or enter manually.  If an Escrow Analysis has been previously prepared and printed for this client, that information will appear on the screen. 

Effective Date:          
The current date will automatically appear assuming the Escrow Analysis will be effective immediately.  A future date may be selected if you are preparing this analysis in advance.  This date is used for calculation purposes and is not used to “post” in advance.

Current Escrow:        
This is pulled from the Loan Master Escrow 1 Amt and Escrow 2 Amt fields. 

Current Monthly Payment:
This is the Payment Amount from the Loan Master.  This does not include any Escrow amounts currently being withheld. 

Current Escrow Balance:
This is the Loan Total amount from Escrow 1 and Escrow 2 on the Loan Activity Report.  It is all escrow amounts withheld less escrow payouts. 

Expected by effective date: 
This box allows you to enter any additional amounts expected to be received into the escrow account between now and the effective date that have not yet been posted to the history but should be considered as part of the Current Escrow Balance. 

Description:               
Enter a brief description of the escrow item, i.e., taxes. 

Estimated Amount:  
Enter the estimated amount that will need to be paid for the item. 

Term:                          
Enter the number of months covered by this estimated amount.  For example, if the amount is a semi-annual payment, enter 6. 

Last Escrow Paid:    
Enter the last date this escrow was disbursed.  

Escrow:                     
Calculated amount based upon the Estimated Amount divided by the Term.  No entry is needed in this field.

# of Payment:           
Last Escrow Paid date is compared to the Effective Date to determine number of months in arrears.  No entry is needed in this field.

Req Escrow Balance: 
Calculated amount based upon Escrow multiplied times # of Payment.  No entry is needed in this field.

Repeat for each escrow item.  

Once all items have been entered, new escrow and payment amounts will be computed and display on the screen.  You may now print the Escrow Analysis.  By selecting Save, your Escrow Analysis is saved for later retrieval.

Should you wish to update the Loan Master with the new Escrow and Payment Amounts, select the Post icon.    

Special Icons

Post                            
Updates Escrow 1 Amt and Payment including Service Fee and Escrow in Loan Master file based upon the information entered and calculated in the Escrow Analysis.  

Things You Should Know
The Escrow Analysis is designed to be prepared on an annual basis to assist you in determining what the monthly payment should be in order to have enough dollars on hand to pay out the escrow items as they become due.  Any escrow overages or shortages are amortized over twelve months and added to or subtracted from the monthly escrow amount.

When you select to Post the escrow amount to the Loan Master, it will post to the Escrow 1 Amt field.  If you wish for a portion to go to Escrow 2 Amt, you will need to edit the Loan Master.   Also, if you wish to have a maximum for either Escrow 1 or Escrow 2, these, too, will need to be edited in the Loan Master.