Does it matter if the aggregate adjustment amount is not taken into consideration in the calculated dollar amount disclosed in Block 9 of the GFE?

Yes, it won't be because you might not know exactly the amount of items being escrowed. The aggregate adjustment only shows up on the HUD-1 after the escrow analysis is conducted.

Thanks KPOC. I appreciate the response. I am reviewing loan documentation and wasn't sure since the instructions for the GFE indicates:

"estimate the amount that it will require the borrower to place into a reserve or escrow account at settlement..."

Thanks again.

No problem. Yes, on the GFE you can use a rough estimate. For example, if it's your bank's policy to require a 2-month cushion, put an estimate of that amount in Block 9 on the GFE. It's just a quick and dirty estimate.

On the HUD-1, the aggregate adjustment piece will be a negative number that ensures when the escrow account reaches its minimum over the year, it will not exceed the 2-month cushion. The aggregate adjustment and initial deposit are actually calculated using a worksheet.