Typically we deal with mortgage loans that have monthly payments. In which case we collect a one month cushion for the escrow account. We have now added a new product which allows for bi-weekly payments. A question has now been asked, what should we collect as a cushion for these types of files?

I believe it's primarily an issue of whatever you're comfortable with collecting, as long as it's equal to or less than 1/6th of the total annual amount, which is the maximum you can collect under RESPA (unless your state law has lower limits).