http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=191837

The message thread attached has to do with escrow requirements on past due / non-accrual loans. I was researching this very topic today and was glad to find the thread.

It got me wondering, though, how much of this 'old way' will still hold true with the updated servicing rules. There's no impact on past due loans, right? Only if there are not sufficient funds in the escrow to pay the insurance ... correct?

As far as the periodic statementing of loans on non-accrual, would the statements need to look different for these loans? As far as the customer is concerned their payment is applied to P&I, it is only handled differently on the back end. We are wondering if we need to try to account for the differences in the way these loans are processed on the statements. Any thoughts would be appreciated.

The periodic statement will reflect the legal obligation of the customer.

Your accounting is a separate issue as you have guessed.

Thank you!