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Escrow Analysis

The escrow account on your loan was established to pay certain bills associated with your property, such as real estate taxes and pass through insurances. The Annual Escrow Disclosure Statement is a review and recalculation of your escrow account based on the amount collected from the escrow portion of your monthly mortgage loan payment and the amount distributed. As a result of our analysis of your escrow account, your monthly payment may change to ensure there is an adequate balance to pay future disbursements when due and to maintain the permitted reserves.

What Does It Mean to Have a Surplus or Shortage?

Increases or decreases in your real estate taxes or pass through insurance premiums may cause a surplus or shortage in your escrow account. If bills paid from your escrow account were lower than expected, your account may have a surplus. If bills paid from your escrow account were higher than expected, your account may have a shortage.

What Is a Cushion?

The cushion is reserve, held in your escrow account, used to help cover any changes in real estate taxes or insurance premiums.

How Do I Read my Annual Escrow Account Disclosure Statement?

  1. New Payment Summary
    This section indicates the amount of your new loan payment, based on our analysis. Any surplus or shortage to your account will also be noted in this section.

  2. Account History
    This section lists the actuals payment to and from your escrow account, as well as the escrow account balance.

  3. Prior Account Disclosure Statement
    This section indicates our estimate of the receipts and disbursements to be made last year.

  4. Projections for the Coming Year
    This section indicates our estimate of activity projected for your escrow account for the coming year.

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