Escrow Basics
What does an escrow consist of?
Taxes and Insurances
What task is set to complete an escrow analysis off scheduled?
ANAID
What is it called when a client wants to pay escrow out of pocket?
Escrow Waiver
If a client calls in and wants to know why their monthly payment increased even though they have a fixed rate, in MOST cases it is due to what?
It is due to an increase in taxes and HOI.
How many times are we able to remove escrow for taxes/insurance from escrow after they are lender placed?
We offer a one-time courtesy.
What is an escrow account?
An account where money is collected from the client monthly to payout for their taxes and insurance for the year
What is the required cushion amount?
What is paid into escrow monthly x 2 (2 months cushion)
What is the work item to set when client is wanting to add escrow for both insurance and taxes?
Hazard Insurance: Client Is Adding Full Escrow- Hazard
We have to collect for the new amount as to what taxes and insurance have increased to moving forward, to prevent shortage next year, if nothing changes.
True or False: If a client has had LPT and we removed it as a courtesy, and then they get LPT again, but it was determined that they paid the taxes before we paid the taxes and their escrow balance is positive, we can then remove taxes from escrow.
True. If the loan is noted that the tax office received the client's payment before ours then taxes can be removed. Work item to set is Tax Research: Client Paid Taxes First. Remove Lender Placed Taxes Luna work item.
This is ran every year, typically once a year to adjust clients' monthly payments according to what was paid for taxes and insurance.
An escrow analysis
How can we determine the anticipated shortage amount before an e/a is ran?
Check D7 under ANA1 trial screen or in escrow overage/shortage screen
When a client is switching insurances, what is the process we are to advise? There are 4 steps (in no specific order)
Provide us with the new insurance information, call and cancel the old insurance effective whenever the new insurance takes effect. The old insurance should send a refund for the months they did not cover. Once refund is received, it should be deposited into escrow and then request off scheduled e/a.
True or False: A client calls in because they have a large shortage and wants to make a partial payment towards it, they can then request a new e/a to be completed to update their shortage amount?
True. As long as the difference in their payment would be 10.00 or more monthly.
2
No. If loan was originated in both names, check cannot be reissued without a name unless name is removed (ROL process)
When setting task for off scheduled e/a, what are the expectations we are to advise clients for it being completed?
True or False: If a client's loan is delq but they have an escrow overage they call in to advise they never got we can request check is reissued and apply it to the past due payments?
False. Any overages would be held until the loan is brought current and escrow balance is sufficient enough to cover what needs to be refunded.
A client calls in advising that they have switched insurance companies, to a company that was cheaper and their payment still went up when it should be lower. In most cases, the reason for that is due to what?
Their escrow reflects 2 HOI disbursements made, and the refund was not put back into escrow from the old insurance.
When the final notices for lender placed escrow is sent out, how long does the client has to pay before it becomes added to the loan?
25 business days after the notice is sent out.
When clients are escrowed, what doc provided at closing can be looked at to see how much money will be added into escrow from the start, what payments would be made from the escrow account, how much money is paid into escrow monthly and when payments are expected to be made for the year?
Initial Escrow Account Disclosure Statement
When can a client request an off scheduled e/a?
We need proof of insurance and receipt for taxes showing they have been paid for the year. Turn time for adding escrow takes up to 90 days.
The client calls in to pay their shortage and wants to keep their payment the same to keep their payment the same is that possible. Why?
No. We do not have an option to pay the difference as to what escrow is increasing to, just the option to pay shortage to bring escrow balance current. The only way to get their payment back down to what was paid is if they are able to get escrow lowered.
If client has LPI and they were non escrowed and e/a was completed showing that the payment is increasing for insurance being added to escrow. Client is looking to continue to pay insurance out of pocket, but escrow is in the negative for lapse, what are the next steps? Do we process the payment for the shortage or the lapse in coverage?
Process the payment for the lapse in coverage, then set work item Hazard insurance: Client paid bill for lapse REMOVE ESCROW