Maintaining an Escrow Loan
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The Loans - Escrow Info tab adds escrow current and next period analysis information and an escrow share account for an existing loan or maintains the escrow current and next period analysis information on an existing loan. Portico 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.
To access the Escrow Info tab, under Member Services on the Portico Explorer Bar, click Account Information. The Overview tab appears on top. Click the Loans tab. Locate the member using the search tool on the top menu bar. Select the down arrow to select the search method, then enter the search criteria. Select the green arrow or press ENTER to locate the member.
Click the Select a Loan Account down arrow to select the loan note number and description. Then, click the green arrow. The General tab appears on top. Click the Escrow Info tab.
How do I? and Field Help
Allowable maintenance to the fields on the Loans - Escrow Info tab is based on the escrow status.
- When the escrow account has been recalculated, the loan payment changed, and the information in the Next Period group box has been transferred to the Current Period group box (status C), the next period information, as well as the Escrow Share Type, Property ID, and Authority ID fields can be maintained.
- When a loan has gone through escrow recalculation, but no analysis could occur because no escrow items existed (status E), no maintenance can be performed on the Loans - Escrow Info tab.
- When a new loan that has not yet undergone escrow recalculation (status N), all of the fields on the Loans - Escrow Info tab can be maintained except the Escrow Share Balance field.
- When the associated loan balance is zero, and a short year statement has been generated (status P), no maintenance can be performed on the Loans - Escrow Info tab.
- When the escrow account has been recalculated, but the system has not yet changed the loan payment amount or transferred the information in the Next Period group box to the Current Period group box (status R), only the next period information, as well as the Recalculate, Escrow Share Type, Property ID, and Authority ID fields can be maintained.
To trigger the analysis of a specific account and automatically generate the notice, you can select C- Recalculate tonight due to corrections from the Recalculate dropdown on the Loans - Escrow Info tab for an account currently in a recalculated (R) status. Portico recalculates the escrow account in the next back office cycle. Select Y - Recalculate in next month-end back-office cycle from the Recalculate dropdown to trigger the analysis of a specific account and automatically generate the notice in the next month-end back-office cycle.
The Loans - Escrow Info tab displays the following information:
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The first payment month and year in the analysis period each time the escrow account is recalculated. 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 share type which receives the escrow deposits. Click the down arrow to select a different share account than the default option. 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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The current balance in the specified share account. Length: 12 numeric including decimal |
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The total escrow paid with the loan payment for the statement period to date. The total will be updated as payments are applied to the loan. Only payments applied during the current billing cycle will be reflected in the total. Escrow, paid as the designated part of the loan payment amount will be added to the total. The total will be cleared to zero when the loan is reported on the mortgage loan statement. This total can be maintained on the Principal and Escrow - Maintenance dialog box. Reporting Analytics: Escrow Curr Period (Loan Base subject in Loan folder and ME Loan Base subject in Month-end Information\Loan Month-end folder) |
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When escrow is supported on the loan, this is the total escrow paid for the calendar year. The total will be updated as payments are applied to the loan. Only current year escrow, paid as a designated part of the loan payment amount will be added to the total. The total will be rolled to the Prior YTD field when the year end totals are reset. Reporting Analytics: Escrow YTD (Loan Base subject in Loan folder and ME Loan Base subject in Month-end Information\Loan Month-end folder) |
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The total escrow paid for the prior calendar year. The total from the Year to Date field will be rolled to the Prior YTD field when the year end totals are reset. This total cannot be maintained and is not updated by the payment process. Reporting Analytics: Escrow Prev Year (Loan Base subject in Loan folder and ME Loan Base subject in Month-end Information\Loan Month-end folder) |
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Click the down arrow to select 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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Click the down arrow to select 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: 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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Indicates if the system should recalculate this escrow account in the next month-end back-office cycle. To trigger the analysis of a specific account and automatically generate the notice, you can select C- Recalculate tonight due to corrections from the Recalculate dropdown on the Loans - Escrow Info tab for an account currently in a recalculated (R) status. Portico recalculates the escrow account in the next back office cycle. Select Y - Recalculate in next month-end back-office cycle from the Recalculate dropdown to trigger the analysis of a specific account and automatically generate the notice in the next month-end back-office cycle. The valid options are: A - Recalculate the escrow account when the next analysis date meets the criteria for recalculation. System default. Y - Recalculate the escrow account in the next month-end back-office cycle regardless of the date in the Payment Analysis Next field. The system will reset the next analysis date based on the option specified in the RESET NEXT DATE field on the 465 Report Rules. C- Recalculate tonight due to corrections. Portico recalculates the escrow account in the next back office cycle, and automatically generates a notice. N - Do not recalculate this escrow account. Keyword: RE |
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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 |
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. Click Add to display the Loan Escrow Item dialog box and add an escrow item.
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The number of the escrow item. The valid options are: 0 - Over/short amount (system generated) 1 through 9 - Tax or insurance Reporting Analytics: Escrow Number (Member Automated Transfer subject in the Member Information folder and ME Member Automated Transfer subject in the Month-end Information\Member Month-end folder) |
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The type of escrow item.
Keyword: TY Reporting Analytics: Escrow Type (Member Automated Transfer subject in the Member Information folder and ME Member Automated Transfer subject in the Month-end Information\Member Month-end folder) |
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The credit union-defined description for escrow item if the escrow item is Insurance, Tax, or Qualified Mortgage Insurance. The description for escrow item type zero (0) is OV/SH/ADJ. Length: 25 alphanumeric Keyword: DE |
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The disbursal month and year of this escrow item for the current analysis period. The system will advance this date based on the frequency specified in the Disbursal Frequency field at the time analysis occurs unless a valid date appears in the Next Period Disbursal Date field. Keyword: CD Format: MM/YY |
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The disbursal amount for this escrow item for the current analysis period. Maintenance to this field will update the loan payment amount and the payroll distribution amount. For escrow item zero (0), this amount is the calculated shortage/surplus in the escrow share account as determined by the escrow month-end recalculation. Length: 12 numeric including decimal Keyword: CA |
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The frequency that the credit union will be disbursing the escrow item during the current analysis period. The valid options are: A - Annually B - Every other year T - Every three years M - Monthly Maintenance to this field will update the loan payment amount and the payroll distribution amount. Keyword: CF |
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Indicates how the system should recalculate each individual escrow item at the time of escrow recalculation for the current analysis period. The valid options are: L - Use the value in the Disbursement Current Period field as the amount to be collected from the member during the next analysis period. If the value in the field is zero, the system will use the value in the Current Period Total Amount field for the next analysis period. If the value in that field is zero or if the item is a new escrow item, the system will use the amount in the Next Period Total Amount field as the amount to be collected during the next analysis period. K - Use the value in the Next Period Total Amount field as the amount to be collected from the member during the next analysis period. You should maintain this field when you receive notification from an escrow recipient of a set amount to be disbursed for the next analysis period. For example, a member’s insurance company may notify the credit union several months ahead of time that the member’s annual premium will be increasing from $480 to $505 for the next analysis period. In that case, you should enter $505 in the Next Period Total Amount field, and change the Calculation Option field to K. I - Use the value specified in the Inflation Factor field on the 465 Report Rules to determine the amount to be collected from the member during the next analysis period. The factor will be applied to the amount in the Disbursement Current Period field, which is the actual amount disbursed for this escrow item during the current analysis period, to project the next period amount. If the value in that field is zero, the system will apply the inflation factor to the value in the Current Period Total Amount field for the next analysis period. If the value in the Current Period Total Amount field is zero or the item is a new escrow item, the system will apply the inflation factor to the amount in the Next Period Total Amount field to determine the amount to be collected during the next analysis period. Following is an example of how the system applies the inflation factor. The inflation factor is 01.04552, and the Disbursement Current Period field specifies $630. Disbursement Current Period (630.00) x Inflation Factor (01.04552) = 658.68 The amount to be collected from the member for the next analysis period for this escrow item is $658.68. Note: If you use the consumer price index (CPI), you will need to know the CPI for the last year. If you do not have this information, please contact the Department of Labor Statistics or your league. Portico will not provide this information. D - Discretionary item. The system uses the value specified in the Next Period Total Amount field on the Loan Escrow Item dialog box as the amount to be collected from the member during the next analysis period. Refer to the RESPA Ruling for information on discretionary items. Note: The 465 Report must be scheduled in order for the system to recalculate the escrow amount. Keyword: CO |
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The expiration date of the escrow account. The system uses this credit union-defined date for reporting purposes. When this date falls within the next 2 months, the escrow loan will appear on Expiration Report 627. If your credit union receives the 627 Report, you should specify a date in this field if you want the loan to appear on the report. When the Auto Expire checkbox is selected, the escrow item automatically expires at the end of the expiration date month. Keyword: CE Format: MM/YY |
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The current year disbursements for the escrow type. The Current Year field is updated each time a disbursement is made. You can maintain the Current Year field if disbursements have already been made during the year. At year end, the amount in the Current Year field will be moved to the Prior Year field. Length: 12 numeric including decimal Keyword: DB |
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Click the details icon button to display the Loan Escrow Item dialog box and view the escrow item. |
The Totals group box displays:
- The escrow portion of the loan payment that will be deposited to the member's escrow share type when the loan payment is made. This amount includes item zero (0).
- The annual total of all the member's escrow items.
- The total cushion amount for this escrow item. If 1, 2, or P appears in the Cushion Option field, the calculation does not include the value for escrow item zero (0).
Click Save to save your changes.
Escrow Recalculation
Automatic escrow recalculation occurs daily when a correction is performed or during the month-end back-office cycle. Loans that meet recalculation criteria will go through the recalculation process one to two months before the beginning of the designated next analysis period for the escrow account. The Analysis Verification Months field on the 465 Report Rules indicates the number of months your credit union has to verify the escrow analysis results before the values from the Next Analysis Period fields are moved to the Current Analysis Period fields. The valid options for the Analysis Verification Months field are:
1 - Your credit union has one month to make any corrections or adjustments to the values in the Next Analysis Period fields for escrow in the recalculate status. For example, the escrow account is analyzed in the June month-end cycle. You make adjustments during the months of July and the values are applied in the July month-end cycle. System default.
2 - Your credit union has two months to make any corrections or changes to the values in the Next Analysis Period fields for escrow in the recalculate status. For example, the escrow account is analyzed in the June month-end cycle. You make adjustments during the month of July and August, and the values are applied in the August month-end cycle.
The 465 Report must be scheduled to run daily for escrow recalculation to occur. 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.
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.
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- Escrow Recalculation Report 465
- Escrow Disclosure Statement Report 466
- Mortgage Loan Activity Report 625
Loan Base subject in Loan folder and ME Loan Base subject in Month-end Information\Loan Month-end folder
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.
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