If you have a one close const-perm product that has a 12month int only payment and then converts to P&I with escrow month 13 on, how do you disclose the escrow account at closing? The borrower is responsible for tax/ins payments during the 12 month const period, but escrow is required starting month 13.

Do you give the borrower an initial statement that starts the computation date in month 13 and not collect a cushion?