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#1352266 - 03/04/10 04:06 PM oEscrow newbie
QueenBB Offline
100 Club
Joined: Jan 2006
Posts: 190
TX
Loan closes in Apr, 1st payment in June, 2 months cushion, taxes paid in Dec, escrow year is calendar year. How much do we collect at closing? Is it 3 months (May + 2 cushion)? Title co says seller gets credit and 7 months is collected from buyer........(Jan, Feb, Mar, Apr + the (May + 2 cushion). I don't understand. Why? Reading the example from FDIC RESPA Escrow calendar, this does not hold up.

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Lending Compliance
#1352314 - 03/04/10 04:52 PM Re: oEscrow newbie QueenBB
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,834
Bloomington, IN
The first payment is in June with the taxes due in Dec plus 2 months cushion.

You will collect payments for June thru Dec = 7 payments - assuming the taxes are paid for 12 months you will need to collect 5 payments to make up the 12 payments due plus your 2 months cushion, therefore you need to collect 7 reserve payments.

If you don't have David's Escrow Analysis Worksheet then I highly recommend it. It's a great tool. You can find it here

http://www.bankerscompliance.com/compliance-resources/free-downloads.htm
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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