Adding a New Escrow Loan
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For more information about escrow processing, see Escrow Processing.
If you specify an escrow loan type on the New Loan – Additional Information tab, the New Loan - Escrow Information tab will automatically appear. The New Loan – Escrow Information tab adds escrow current and next period analysis information and an escrow share account when a new loan is set up.
How do I? and Field Help
When the New Loan – Escrow Information tab appears, the escrow recalculation defaults from the 465 Report Rules will appear in many of the fields. Enter the remaining information and/or change the default values as necessary.
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The first payment due date when the loan is new. The system updates this field with the first payment month and year in the analysis period each time the escrow account is recalculated. Keyword: LA Length: 4 numeric Format: MM/YY |
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The beginning month and year of the next analysis computation period for this escrow account. On a new loan, this is the beginning month and year of the next analysis period or mass run recalculation date. When recalculation occurs, the system will automatically advance the date in this field. The initial disclosure should cover a period of not more than 12 months and up to the next analysis period. For example, if the first payment due date is 10/01/12, the next analysis date will be 10/13 unless your credit union uses the mass run option. In that case, the system will use the date specified in the Mass Run Recalc Month field on the 465 Report Rules. Keyword: NA Length: 4 numeric Format: MM/YY |
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The type of cushion amount that must be on deposit in the member's escrow share account for the analysis period. The valid options are: 0 - No reserve or cushion required 1 - One twelfth. One month cushion required. This will be 1/12 of the annual escrow amount for all items, excluding item zero (0). 2 - One sixth. Two month cushion required. This will be 1/6 of the annual escrow amount for all items, excluding item zero (0). F - Fixed Amount. A flat amount required. This amount cannot be greater than 1/6 of the annual escrow amount for all items. If it is, the system will recalculate the escrow account using the 1/6 amount and will produce the annual disclosure statement; and also will include the account as an exception on the 465 Report. P - Percentage. A percentage of the annual escrow amount required. This amount cannot be greater than 1/6 of the annual escrow amount for all items. If it is, the system will recalculate the escrow account using the 1/6 amount and will produce the annual disclosure statement; and also will include the account as an exception on the 465 Report. The option selected in the Default Cushion Calc field on the 465 Report Rules is the default option for the Cushion Amount Option Current Period field. Keyword: CC |
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If you select P - Percentage, enter the percentage rate of the annual escrow amount that will be used to calculate the cushion. This amount cannot be greater than 1/6 of the annual escrow amount for all items. The percentage in the Pct field on the 465 Report Rules is the default percentage for this field. The percentage must be greater than zero. Keyword: CP Length: 6 numeric including decimal |
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If you select F- Fixed Amount, enter the flat amount to be used as the cushion amount. Cannot be greater than 1/6 of the annual escrow amount for all items. The amount specified in the Flat Amount field on the 465 Report Rules is the default amount for this field. Keyword: CF Length: 9 numeric |
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The type of cushion amount that must be on deposit in the member's escrow share account for the next analysis period. The valid options are: 0 - No reserve or cushion required 1 - One twelfth. One month cushion required. This will be 1/12 of the annual escrow amount for all items, excluding item zero (0). 2 - One sixth. Two month cushion required. This will be 1/6 of the annual escrow amount for all items, excluding item zero (0). F - Fixed Amount. A flat amount required. This amount cannot be greater than 1/6 of the annual escrow amount for all items. If it is, the system will recalculate the escrow account using the 1/6 amount and will produce the annual disclosure statement; and also will include the account as an exception on the 465 Report. P - Percentage. A percentage of the annual escrow amount required. This amount cannot be greater than 1/6 of the annual escrow amount for all items. If it is, the system will recalculate the escrow account using the 1/6 amount and will produce the annual disclosure statement; and also will include the account as an exception on the 465 Report. The option selected in the Default Cushion Calc field on the 465 Report Rules is the default option for the Cushion Amount Option Current Period field. Keyword: NC |
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If you select P - Percentage, enter the percentage rate of the annual escrow amount that will be used to calculate the cushion. This amount cannot be greater than 1/6 of the annual escrow amount for all items. The percentage in the Pct field on the 465 Report Rules is the default percentage for this field. The percentage must be greater than zero. Keyword: NP Length: 6 numeric including decimal |
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If you select F- Fixed Amount, enter the flat amount to be used as the cushion amount. Cannot be greater than 1/6 of the annual escrow amount for all items. The amount specified in the Flat Amount field on the 465 Report Rules is the default amount for this field. Keyword: NF Length: 9 numeric |
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The share type which receives the escrow deposits. Click the Type down arrow to select a different share account than the default option. The current balance in the specified share account. The system will automatically add the escrow share account for the member if the member does not already have the share account. The share type range is 01 through 99. The share type is designated as an escrow if the Classification field is E-Escrow on the Share Profiles - Account Information tab. The value specified in the Share Type field in the Escrow Loan group box on the Loan Profiles - Additional Information tab is the default value for this field. A member cannot have more than one loan associated with the same escrow share type. The system will not allow this to occur during a new loan setup, unless the existing loan has a balance of zero or is being refinanced by the new loan. Keyword: ST |
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A unique identification code assigned to the property by the taxing authority. Keyword: PI Length: 25 alphanumeric |
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A credit union-defined tax authority identification code. Keyword: AI Length: 3 alphanumeric |
When adding a new escrow share account, if the Social Security number is found in the closed account file, the message Previous account closed by credit union will appear. You can open the Closed Account File dialog box from the top menu bar by clicking View, then clicking Closed Account File. Then, you can use the Action Type drop-down list to temporarily suspend the cross reference check by changing the Action Type field to Suspend so you can add the new share without deleting and re-adding the closed account record. Portico will reset the Action Type field back to Stop during the nightly cycle.
The system allows escrow payment information on loans with the Supported check box selected in the Escrow Loan group box on the Loan Profiles - Additional Information tab for the loan type.
Once you have set up the escrow information on a loan, you must add the associated escrow item(s) using the Loan Escrow Item dialog box. The system increases the member's scheduled loan payment by the escrow amount entered on the Loan Escrow Item dialog box.
Escrow Recalculation
Automatic escrow recalculation occurs monthly during the month-end back-office cycle. Loans that meet recalculation criteria will go through the recalculation process one or two months before the beginning of the designated next analysis period for the escrow account. For example, if the next analysis period beginning month is February 2012, the escrow recalculation for the loan will occur during the December 31, 2011, month-end back-office cycle, if the Analysis Verification Months field is 1 on the 465 Report Rules.
The 465 Report must be scheduled to run daily. Escrow recalculation occurs at monthend. The system will produce an annual disclosure statement for each escrow account for which recalculation occurred and a short year statement when a loan is paid off. However, the system does not produce a copy of the initial disclosure at the first escrow recalculation for the loan.
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- Escrow Recalculation Report 465
- Escrow Disclosure Statement Report 466
- Mortgage Loan Activity Report 625
Fiserv suggests that your credit union set up multiple escrow share types if there is a possibility that your members could have more than one escrow loan. The system cannot separate the escrow activity for annual disclosure purposes if the same escrow share account is used for a member with multiple loans.
The escrow recalculation process will not recalculate any escrow account whose loan has skip payments set up. These loans will appear as an exception on the 465 Report, and you will have to manually create the annual disclosure statement for the member.
You can make deposits to or withdrawals from the escrow share account using the Transactions - Single Deposit, Withdrawal, Payment or Loan Advance tab which allow you to specify the escrow loan and the escrow item number.
To reverse the transaction on the same day, perform the Reversals - Same Day Reversals tab.
For a prior-day correction, update the Loans - Escrow Info tab, and/or perform the Reversals - Prior Day Loan Reversal tab.
Click Next to continue setting up the loan.
Click Cancel to stop setting up the loan.
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