Oops - we mailed a customer the balance in the escrow account and they negotiated it. The customer was paid because, in error, we set a insurance requirement at $0 and everything went sideways. Now the new escrow analysis is playing catch up. You guessed it - the customer is not happy. Thoughts on remedys?

My common sense tells me I'd probably take the loss and put the money that shouldn't have gone to them back in the account.