The following is from our
http://www.bankersonline.com/bankerstore/index.php?main_page=product_info&products_id=423Shortages: [24 CFR 3500.17(f)(3) - page 7014]
If the annual analysis discloses a shortage (an amount by which the balance contains less than the target balance) the servicer’s options depend upon whether the shortage is less than or greater than one month’s escrow payment.
Less than 1 month’s payment - If the shortage is < one month’s escrow payment, the servicer may require the borrower to pay into the account the amount of the shortage within 30 days or require the borrower to repay the shortage in equal payments over a 12 month period.
Equal to or Greater than 1 month’s payment - If the shortage is equal to or > one month’s escrow payment, the servicer has no choice but to collect the shortage in equal monthly payments over a 12 month period.