Rule on Loan Closing and Collecting P & I/Escrow

Currently, during loan closing our Originations Dept only collects 2 months cushion and 1 month of P & I. Example: loan Closed in April and first P & I and T & I payment due 6/1. PMI company wants April and May PMI paid upfront. When I collect customer's payment in June that is for the June PMI Premium we get billed for around June 25th and must be paid by end of July to PMI Company because it's in arrears. Origination says they can't collect 2 months cushion and 2 months needed upfront because it's against the law (this coming from their ORIG System software update that occurred around 2006). It makes the customer short and during escrow analysis their payment goes up because it's missing. What are we doing wrong upfront? Can they really collect this and put it on POC Line? Before that software update in 2006, they collected 4 months now they only collect 3.