A few issues were recently discovered with some escrow accounts. Unfortunately escrow is not my strong point.

1. Customer made a large principal payment and it was incorrectly posted as a regular payment which made an overage in their escrow. The customer then paid a normal payment which also paid their escrow ahead. So escrow is paid ahead, yet the principal and interest are not paid enough. How do I go about fixing this? The payments were made in 2022 and escrow analysis has already been done. Do we figure the amount of principal and interest to get caught up and then pay that from escrow?

2. We have a secondary market side and buy back loans that cannot be sold. We found some loans that the escrow cushion calculated incorrectly (this has been fixed in our system for new loans) when they were bought back and the cushion was reimbursed, so now there is not a cushion because it was reimbursed to the customer... how do fix?


I appreciate any help and if you know of good training for escrow - please pass along!

1. If the payment was incorrectly posted, then that one and all payment since would be stripped from the account and reposted correctly and then you would rerun your escrow analysis.

2. You perform another short year analysis and reset their escrow payments.