I understand HUD's instructions are to show zero for the aggregate adjustment when escrowing for only one item. How do we do that though when rounding becomes a factor? The loan I'm looking at shows an initial deposit of $587.47 on the Initial Escrow Disclosure. The HUD shows $587.50 on line 1004 and -$.03 on line 1008 for the adjustment. I've used the escrow calculator from Banker's Compliance Consulting (thank you David) and that came out exactly as we disclosed it. An auditor wrote us up for this suggesting that we should have itemized the amount as a rounding factor instead of an aggregate adjustment. Is this how others do it also?

Your auditor is smoking/drinking something funny.

The aggregate adjustment can be any figure less than $0.00. It really doesn't matter if it's a rounding factor or not. It is still an aggregate adjustment to the escrow analysis.

I've been using David's analysis worksheet for over a year, and I have yet to find a mistake (unless we entered something wrong).

Where can we find Davids analysis worksheet? Thanks!

Banker's Compliance Consulting