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Escrow cushion amount

Question: 
Occasionally, the secondary market makes us collect too much at closing (13th month example). Just to clarify, at closing we can collect a 2-month cushion, the balance determined by the aggregate analysis and anything due before the start of the escrow account computation year. Correct?
Answer: 

Not quite. The 2-month cushion should already be factored in to the aggregate analysis balance. Thus, you can collect the balance determined by the aggregate analysis and anything due before the start of the escrow account computation year (first loan payment date). Anything due after the first payment date needs to be included in the escrow account.
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Escrows From A to Z

First published on 08/06/2017

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