System Processing Exceptions
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Certain loan situations will cause exceptions in the escrow recalculation process. These situations are as follows:
- Multiple loans to one share type
- Skip payments
- Initial disclosure
Multiple Loans to One Share Type
To ensure that escrow analysis works properly, members who have multiple escrow loans cannot use the same escrow share type for their loans. Therefore, your credit union may choose to have loan types that are identical except for the default escrow share type if it is possible that a member could have more than one escrow loan with a balance greater than zero. Or, you can use the same loan type, but maintain the escrow share type on the Loans - Escrow Info tab to be something other than the default.
An edit exists on Portico to prevent a member from having multiple loans associated with the same escrow share type. A loan with a zero balance or a loan being refinanced with the New Loan - Refinance/Fees tab is exempt from this edit.
Skip Payments
The escrow recalculation process will not recalculate any escrow account whose associated loan has skip payments set up. These loans will appear on the exception portion of the 465 Report. You will have to manually create the annual disclosure statement for the member. An edit exists on Portico to prevent skip payments on a loan with an associated escrow share account.
Initial Disclosure
The system will not provide the initial disclosure for a new loan. This is the responsibility of the credit union. Because we do not provide this initial disclosure, we cannot create a copy of the initial disclosure at the first escrow recalculation. For any new loans processed after May 24, 1995, you must send a copy of the initial disclosure with the annual disclosure or short year statement. In addition, any variations between the initial disclosure and the actual history of the escrow activity will not be noted.