A escrow analysis was performed on a loan November 20, 2013. The initial escrow statement’s payments began in January, 2013.
The actual escrow statement that printed last month is assuming the monthly payments for November and December will be made by the borrower. The “actual history” statement did not report property taxes were disbursed in December. We will be paying the taxes in Dec. We just received the bill from the borrower (a little late). However, the ending balance for the “actual history” stmt vs. the beginning balance for next year’s “projection” is short (the property tax payment)…so I believe the system is calculating the analysis correctly. BUT the disclosures do not reference the reason for this shortage.
Is that okay, or should we be referencing (in December) that the ‘bill was paid” on the “actual” when it was not? We have borrowers that forget that we handle their escrow on taxes and go pay the tax bill themselves without the bank ever getting the bill. If they get the annual statement that says we paid in December, they will be expecting a refund. We had that scenario happen just the other day.
Would LOVE some guidance, please. Thanks in advance!
I assume that the loan was closed and the escrow account was established on November 20, 2012. The first payment on the loan was due in January 2013. If these assumptions are correct then the escrow year ended on November 20, 2013. The analysis should show activity through the end of the escrow year, November 20, 2013. The history should show the actual activity during the escrow year, which apparently did not include the payment of taxes. The payment of 2013 taxes would appear on the next annual statement for the period November 20, 2013 to November 20, 2014.