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#1666931 - 02/17/12 03:52 PM Short Year Escrow Payoff Statement
hij Offline
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Is the short year statement provided when the loan pays off required to show what was projected to happen in the account since the last annual statement or just the actual activity?

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RESPA
#1666942 - 02/17/12 04:09 PM Re: Short Year Escrow Payoff Statement hij
rlcarey Online
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just the actual activity
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#2114396 - 01/17/17 06:33 PM Re: Short Year Escrow Payoff Statement hij
MyKidsMom Offline
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Can you direct me to a citation for this?

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#2114415 - 01/17/17 07:05 PM Re: Short Year Escrow Payoff Statement hij
happyauditor Offline
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I would think there is no direct citation for this (although I may be wrong), but to me it is common sense...but I do know of one vendor that includes the "projections" and my opinion is that it is confusing and maybe even misleading to the customer.
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#2114417 - 01/17/17 07:14 PM Re: Short Year Escrow Payoff Statement hij
Dan Persfull Online
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The purpose of a short year statement is to end the current computation year and establish a new one. In a payoff situation you would need to end the current computation year but why would you need to establish a new one?
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#2114448 - 01/17/17 09:21 PM Re: Short Year Escrow Payoff Statement hij
happyauditor Offline
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Actually, re-read the original posters question and I believe I misinterpreted what the question was asking.

My response above was speaking about a vendor including the "projections" after the actual payoff. For example, let's say annual statement is calendar year (Jan through Dec) and loan payoff is in April. The vendor I was referring to included on the short year statement at payoff the actual activity from Jan through April as well as the projections for Jan all the way through to Dec, instead of cutting the projections off at April (payoff).

I would think the final short year statement should include the prior projections up to the payoff, in order to reconcile the escrow balance at payoff.
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#2114460 - 01/17/17 09:51 PM Re: Short Year Escrow Payoff Statement hij
Dan Persfull Online
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If the loan pays off in March and the escrow account is closed why would you need April - Dec projections to reconcile the escrow account's activity through March? I'm not sure I'm following.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2114461 - 01/17/17 09:57 PM Re: Short Year Escrow Payoff Statement hij
happyauditor Offline
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I'm not saying you need April through Dec. I am saying the payoff short year statement should show Jan through April (payoff) actual as well as what was projected for Jan through April only.

The vendor I mentioned was also including the projections for May through December which made no sense to include since the loan was paid off in April.
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#2114466 - 01/17/17 10:07 PM Re: Short Year Escrow Payoff Statement hij
Dan Persfull Online
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as well as what was projected for Jan through April only.

OK, I misunderstood. But to reconcile the escrow account you only need the actual pay-ins and pay-outs. The projections would not have anything to do with the account reconciliation.

If the account balance began with $1,000 and there were 3 payments of $100 received into the account and $500 in payouts then the balance to refund would be $800. The projections would not have any affect on this that I can see.

Now with that said if the analysis included the projections I'm not going to lose any sleep over it.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2114467 - 01/17/17 10:10 PM Re: Short Year Escrow Payoff Statement hij
MyKidsMom Offline
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Let me clarify. WE send a short year statement when a loan pays off. We do not include a copy of the projections issued with the last annual statement. Instead, the borrower is directed to refer to prior year's annual statement for the projections. We are being told that the projections need to be included with the short year statement.

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#2114512 - 01/18/17 02:23 PM Re: Short Year Escrow Payoff Statement Dan Persfull
happyauditor Offline
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"The projections would not have anything to do with the account reconciliation."


Yes, you are right Dan. Was not thinking it through all the way.
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#2114517 - 01/18/17 02:28 PM Re: Short Year Escrow Payoff Statement MyKidsMom
rlcarey Online
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Originally Posted By MyKidsMom
We are being told that the projections need to be included with the short year statement.


Ask whoever is telling you this, ask for a citation. Past or future projections have nothing to do with a final reconciliation of the escrow account, which the short year escrow statement at pay-off is meant to fulfill..
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2114520 - 01/18/17 02:33 PM Re: Short Year Escrow Payoff Statement hij
MyKidsMom Offline
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Thanks.

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