Does anyone utilize a voluntary escrow agreement? If so, where did you find your template? Do you also have you customers sign a Voluntary Additional Escrow payment form?

There are some samples on-line, you just have to search for them:

https://www.franklinamerican.com/wi...ent_general_forms/paymentshockletter.pdf

Hi Anonymous!

We use the voluntary additional escrow payment affidavit all the time. Mostly for construction loans but also for loans where the escrow only has half the taxes in the first year's escrow disbursements. We do have the borrowers sign, and they also need to check a box saying whether they want the additional payment or not (as it is voluntary). Then when we analyze the escrow the next year, we include of copy of the affidavit after the copy of their previous projections.

I'm not sure where we found our sample of the affidavit but it's a little different than the one linked above. Here's a copy and paste of it below:

VOLUNTARY ADDITIONAL ESCROW PAYMENT AFFIDAVIT
Borrower:
Loan #:

The below signed mortgagor(s) is/are aware that the monthly escrow payment has been temporarily set up at an amount less than the estimated full 1/12 of the total annual escrow disbursements. This may result in the possibility of a shortage and/or deficiency in the escrow account at the time of the next annual escrow analysis.

The reason for the escrow payment being set at a lower amount is due to either the property not being assessed at its full value at the time of closing and/or the Initial Escrow Statement, as required by RESPA, did not include all of the annual disbursements for taxes and insurance.

In order to avoid the possibility of a substantial escrow shortage and/or deficiency and limit the increase in the monthly payment at the time of the next escrow analysis, additional funds can be voluntarily deposited into the escrow account.

Please check one:

The additional amount of escrow funds I voluntarily want included in my monthly payment is:

$ (Amount recommended by lender)

$ (Amount requested by borrower)

I do not wish to make additional deposits to my escrow account. I realize that my escrow payment, which is included in my monthly mortgage payment, may increase substantially when the account is re-analyzed.

With the voluntary additional escrow payment recommended by the lender, my total monthly payment (principal, interest and escrow) will be $ .

I understand that I can cancel this voluntary additional escrow payment at any time.

_____________________________________ _____________________
Borrower’s signature Date