Guide To Escrow Account
(Are you are looking for an aggregate escrow calculator to give you the monthly escrow amount that you'll need to deposit on top of your mortgage payment for repaying interest and principal on your loan? The easiest way to calculate the aggregate adjustment is to summarize the year's payments and expenses. With one line for each month, enter the amount due for property tax, insurance, or other regular expenses for a given month. Next, add up the total expenses and divide by 12.)
On October 26, 1994, The Department of Housing and Urban Development (HUD) established a nationwide standard escrow accounting method for all loans subject to the Real Estate Settlement Procedures Act (RESPA). This method is known as "aggregate accounting". Your escrow account has been analyzed using this method. Please use this form in conjunction with the accompanying ESCROW ACCOUNT PROJECTION AND HISTORY STATEMENT.
The left side of this form is a projection of the escrow disbursements for the next year. This may show the actual amount paid for that item, or if unknown, the projection may include a RESPA authorized adjustment to the previous year's disbursement. The total of the projected disbursement(s) is divided by a specific number of months to arrive at the monthly escrow deposit before surplus or shortage adjustment. The monthly Escrow Deposit is used on the Coming Year Escrow Projection Statement for the "Payments to Escrow".
The right side of this form, PAYMENT INFORMATION, provides an itemized description of your New Payment Amount including any required surplus, deficiency and/or shortage adjustment. For comparison, an itemized description of your previous payment has been provided.
Coming Year Projection
The purpose of the Coming Year Projection is to determine the lowest balance "Low Point" to which your escrow account will decline over the upcoming year.
The left side of the projection form is a month-to-month description from our escrow account. The beginning Escrow Required Balance includes the disbursement of any surplus reported or repayment of all shortages and/or deficits. The maximum low point by Federal Law (RESPA) is 2 monthly deposits (1/6) of your total annual disbursements from your escrow account. However, if your loan documents or state law specifies a lower minimum balance, this lesser amount will be the allowable low point for your account.
The right side of this form is a comparison of the projected low point of your escrow account to the allowable low point to determine a surplus or shortage. If the projected low point is greater than the allowable low point, there is a surplus. If the surplus is $50.00 or greater, it will automatically be refunded to you. If less than $50.00, we have the option of refunding or lowering your monthly payments accordingly.
If the projected low point is less than the allowable low point, there is a shortage and/or deficiency, which will be recovered by an adjustment to your monthly payment over the specified number of months. The adjustment amount(s) appear in the Low Balance Summary and Current Payment box.
GUIDE TO ESCROW ACCOUNT HISTORY
This statement itemizes your actual escrow account transactions since your previous analysis statement or initial disclosure. The projections from your previous escrow analysis are to the left of the actual payments and disbursements. By comparing the actual escrow payment with the previous projections listed, you can determine where a difference may have occurred.
An asterisk (*) indicates a difference in either the amount or date. When applicable, the letter "E" beside an amount indicates that a payment or disbursement has not yet occurred but is estimated to occur as shown.
Your projected low point may or may not have been reached based one or more of the following factors:
- Monthly payment(s) received were lesser OR greater than expected.
- Monthly payment(s) received earlier OR later than expected.
- Previous overage was returned to escrow.
- Previous deficiency/shortage not paid entirely.
- Tax rate and/or assessed value changed.
- Exemption status lost or changed.
- Supplement/Delinquent tax paid.
- Tax bill paid earlier OR later than expected.
- Tax installment not paid.
- Tax refund received.
- New tax escrow requirement paid.
- Premium changed.
- Coverage Changed.
- Additional premium paid
- Insurance bill paid earlier OR later than expected.
- Premium was not paid.
- Premium refund received.
- New insurance escrow requirement paid.
- Force placed insurance premium paid.
IF YOUR ACCOUNT HAS A DEFICIT AND / OR SHORTAGE:
The escrow analysis shows that you have a total deficit and/or shortage of, we have divided this shortage by 12 and added the prorated amount to your monthly payment. You may pay this shortage in full by sending a check for the entire shortage amount. Please send a separate check or money order along with this form (do not include with your monthly mortgage payment) to the following address:
- Customer Relations
- Standard Mortgage Corporation
- One Shell Square
- 701 Poydras Street, Suite 300 Plaza
- New Orleans, LA 70139-0300
Please write your loan number on the check to ensure proper credit to your escrow account. Please do not include with your monthly mortgage payment. A new coupon book will be sent to you automatically, within thirty days.