"(1) Contents of annual escrow account statement. The annual escrow account statement shall provide an account history, reflecting the activity in the escrow account during the escrow account computation year, and a projection of the activity in the account for the next year. In preparing the statement, the servicer may assume scheduled payments and disbursements will be made for the final 2 months of the escrow account computation year."
I have a question concerning the above statement. I am reviewing an annual escrow analysis that was completed about a month before the end of the computation year. The account history lists an accurate picture of what was paid into and out of the account for the previous year, but the last payment had not been paid into the account when the escrow analysis was performed. Usually our system assumes the last payment will be made; however, this time it did not. It left the last month as $0, thus the ending balance does not match the projected starting balance on the projections page.
So here is my question. The regulation states you may assume the final 2 months, but if the account history page fails to do this is it considered an error? Or is this acceptable as long as the projection page starting account balance is accurate?
Thanks in advance for your help.
It is better to act cautiously beforehand than to suffer afterward.
The answers I give are my opinions. Not legal advice.