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#1413639 - 07/09/10 08:56 PM Initial Escrow Deposit
Kim M. Offline
100 Club
Joined: Oct 2005
Posts: 129
Kansas
Escrowing is a new thing in our bank. Can anyone please help?

Our bank uses 2 months cushion for escrow balances. Can the initial escrow deposit be more than 2 months cushion?

Thanks, Kim

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#1413671 - 07/09/10 09:32 PM Re: Initial Escrow Deposit Kim M.
Cowboys Fan Online
Power Poster
Joined: Dec 2002
Posts: 4,615
SC
Yes. Banker's Compliance has a great tool you can use to calculate the initial analyis/initial deposit.
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#1413683 - 07/09/10 09:40 PM Re: Initial Escrow Deposit Cowboys Fan
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Thanks for your kind words about our Escrow Calculator Cowboy. I also did a webinar for BOL in March 2010 on escrows. You might want to check it out Kim:
http://www.bankersonline.com/bankerstore/index.php?main_page=product_info&products_id=971
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David Dickinson
http://www.bankerscompliance.com

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#1413695 - 07/09/10 09:59 PM Re: Initial Escrow Deposit David Dickinson
Kim M. Offline
100 Club
Joined: Oct 2005
Posts: 129
Kansas
David,

We did listen to your BOL webinar, and it was good.

We booked a loan on our loan core system and the core processor did not match our inital escrow analysis. We talked to the core processor and they told us the initial escrow deposit could not be more.
We were very confused. Thanks, kim

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#1413714 - 07/09/10 10:28 PM Re: Initial Escrow Deposit Kim M.
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Can you tell us why it didn't match. If you used the calculator Cowboy linked you to, it should be right. Sometimes there can be rounding issues, but it should be a few pennies.
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David Dickinson
http://www.bankerscompliance.com

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#1413750 - 07/10/10 01:10 PM Re: Initial Escrow Deposit David Dickinson
Kim M. Offline
100 Club
Joined: Oct 2005
Posts: 129
Kansas
They changed the 2 months cushion amount, which was a rounding issue, and also changed the inital deposit to be equal to 2 months cushion. Ths made their statement long 9 cents.

Didn't you say in your webinar, there is no tolerance, we can't have extra even 1 cent? Is there a tolerance?

Thanks Kim

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#1413768 - 07/11/10 06:19 PM Re: Initial Escrow Deposit Kim M.
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
There is no tolerance; but because there are lots of rounding in the calculation, there can be a few cents difference between our calculator and theirs.

You must use Aggregate Accounting. There's only 1 right answer, but 2 different answers could occur because of rounding. If it's a few cents off, it considered acceptable.

I don't know that 9 cents is an issue, if it's due to rounding.
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David Dickinson
http://www.bankerscompliance.com

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