I am reviewing escrow statements and I've noticed that when the annual analysis is completed and the appropriate disclosures are created by the system, the account history puts the initial escrow deposit collected at loan origination as a payment in the month the loan was originated instead of putting it as the starting balance. The vendor is saying this is because the escrow account started with $0 at loan origination. I feel like it started with the escrow deposit obtained at loan origination.

I am sure I am over thinking this and/or making something out of nothing. But I would appreciate it if someone could let me know if the first history statement given to the borrower...the one prepared the first year after origination...has $0.00 as the starting balance and then shows 13 to 14 months of history with the initial escrow deposit showing as a payment.

Thanks in advance for your help!

I am sure I am over thinking this and/or making something out of nothing.

I concur. However, how can your first annual statement have 14 months of history???

The escrow department is running the analysis 45 to 60 days in advance of the end of the escrow year so that they can meet the 30 day requirements.

The software providers response was that since the last payment or two, in some cases, of the escrow year hasn't been made yet it will look back twelve months. So if my escrow year runs January to December and we run the analysis in October or November the system will count back 12 months from the date of the analysis giving us a 13 to 14 month look back.

The funny thing is that after the second escrow year when the analysis is run, no matter how far in advance, the statements are correct with a starting balance and a 12 month history.

Sounds like you have a software problem to me.