I would like to ask how other institutions are handling 1024.17(i) "The servicer shall also submit to the borrower the previous year's projection or initial escrow account statement." for new loans when this is the first annual statement and the initial escrow account statement was produced on a separate system.

Do you send another copy of the initial escrow statement along with the annual statement that first year?

I am looking out our processes for escrow accounts after recently listening to a webinar on escrows and I am questioning whether our current process is adequate to meet that sentence.

I am unsure of your question, The requirements are pretty straight forward:

submit to the borrower the previous year's projection or initial escrow account statement.

It is one or the other.

Most banks have an annual statement that shows the historical info in one column and the previous projection (or the initial disclosure projection) in a column right next to it. If the initial disclosure was prepared on one system, you should be able to "load" that info to the system that produces the annual disclosures. If not, you'll need to send a copy of the initial disclosure.

Thank you both for your answers.