Escrow and the Aggregate Analysis Date

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Question:

Our bank is brand new to escrow. We will use Oct. 31 for our aggregate analysis date. For loans closed on all other dates besides Oct. 31, what is the rule for issuing short year statements to get all loans on the same computation year schedule? If we close a loan in August, can we wait until the following October to do analysis?

Answer:

You must do an analysis before you close the loan and show the results in the 1000 series of the Settlement Statement. Then you issue a "short year statement" to get the escrow account computation year to whatever date you want. A short year statement is an annual analysis showing the account history, a full year's projection and the "old" projection (or initial disclosure).

First published on BankersOnline.com 7/05/10