How to perform an escrow analysis and generate the annual escrow account disclosure statement?

You are able to print the Annual Escrow Account Disclosure Statement one loan at a time, or for a selection of loans. Also learn how to process and mail statements and refunds due to a surplus. You may wish to review the Prepare for Annual Escrow Account Disclosure Statement topic.

To perform analysis and print the Annual Escrow Account Disclosure Statement "one loan at a time":

TIP: Make sure the loan is marked for Escrow Administration processing. See Loan Terms Details.

Click on the Loan Servicing drop-down menu in the left panel of The Mortgage Office®.
Click the Loans drop-down menu.
Click All Loans from the list that drops down.
From the All Loans grid, select the loan you want to modify.

TIP: If the record you want to edit is not visible, use the grid's vertical scroll bar to scroll the contents of the grid up or down, or click Find to search for the record by entering your own search criteria. For additional information see How to Use Find and How to Use the Data Grids.

Click from the options available on top panel or double-click on the item.
Click Terms from the list located on the left of the window, and select the Details Tab.
Enter the following information in the Escrow Analysis section:

Field	Description
Escrow Analysis Check Box	If not already established at loan setup, place a check in this box if this loan is to have an Annual Escrow Account Disclosure Statement processed. NOTE: If this box is not checked, this loan will not be included if you attempt to process a selection of loans.
Next Computation Period	If not already established at loan setup, enter the Next Computation Period here. The period is shown as a "Month-Year", i.e. Jan-2009 and can be entered as MM/YYYY tab, i.e. 01/2010 tab to enter Jan-2010. This period represents the first month of the coming 12-month projection period that will be shown on the statement. For example: If you plan to run the statement for this loan in December each year for a 12-month projection period of January - December of the "next" year, you would enter Jan-20xx.
Perform Escrow Analysis	This hyperlink brings up the Escrow Analysis & Disclosure Statement Assistant. This assistant will help you produce the annual escrow account statement containing the information set forth in section 3500.17 of HUD's Reg X.
View Payment Changes	This hyperlink brings any record(s) of scheduled Escrow payment changes.

TIP: To make the Escrow Administration process more efficient, some customers may wish to sync the loans so that each loan has the same Next Computation Period.

In order to meet the RESPA requirement that the Escrow Account is analyzed "at least once annually", if you decide to sync loans, some loans may have an analysis performed prior to the loan's first anniversary date, for a short first period.

To perform the escrow analysis:

Click on the Loan Servicing drop-down menu in the left panel of The Mortgage Office®.
Click the Loans drop-down menu.
Click All Loans from the list that drops down.
From the All Loans grid, select the loan you want to modify.

Click from the options available on top panel or double-click on the item.
Click Terms from the list located on the left of the window, and select the Details Tab.
Under the Escrow Analysis section, click the Perform Escrow Analysis hyperlink.

TIP: You may get a message as follows: "Warning! Loan's next computation period is out of acceptable range."

The analysis may only be performed for a period starting with the either the next calendar month or the month after that. Follow the instructions in the warning message to either start the projection period next month or the month after.

With the Escrow Analysis & Disclosure Statement Assistant open, click the Next button and follow the instructions and make the appropriate selections for each step.

TIP: If you are not sure what to select in each step, refer to the Escrow Administration Glossary of Terms & Definitions for more information.

In the Preview, Print and E-mail Statements step, you must click the Print Statements button before the assistant allows you to click Update Loan Files.

CAUTION: IT IS STRONGLY RECOMMENDED THAT YOU REVIEW THE STATEMENTS FOR ACCURACY!

- With the statements open on your screen, you may use the icons at the top of the screen to print, export, email, zoom in/out, etc.
- Once you have completed your review and have printed the statements, click Close to return to the Escrow Analysis and Disclosure Statement Assistant.
- You may click Back to return to the Assistant options or click Update Loan Files then Yes to confirm that you want to update the loan escrow records and exit the Assistant.

To produce the Annual Escrow Account Disclosure Statement "for a selection of loans":

Click on Loan Servicing in the left panel of The Mortgage Office®.
Click on Tasks & Reports from the drop-down menu.
In the Escrow Administration section, click on the Annual Escrow Account Disclosure Statement hyperlink to begin the Escrow Analysis and Disclosure Statement Assistant.
Once the Assistant begins:

Enter a Computation Period Starting date that determines what loans are analyzed.
- In the field; Analysis computation period starting, enter the period as a "Month-Year", i.e. Jan-2009.
  - You can click the down-arrow to choose a date from the calendar or enter the period as MM/YYYY tab, i.e. 01/2010 tab to enter Jan-2010. This Period represents the first month of the coming 12-month projection period that will be shown on the statement.
  - You may get a message as follows: Warning! The starting computation period is out of acceptable range.
  - The analysis may only be performed for a period starting with the either the next calendar month or the month after that.
  - Click OK to return to the assistant and to enter a different Computation Period Starting date.

Click the Next button and follow the instructions and make the appropriate selections for each step.