Escrow Processing

Related Topics

Portico’s escrow processing allows you to deposit, track, and disburse the escrow portion of your members’ mortgage payments. Escrow reporting provides in-depth information to your members on their escrow accounts. Escrow processing provides the following features:

  • Complies with the Real Estate Settlement Procedures Act (RESPA).
  • Allows easy setup of the escrow account when a new is loan added.
  • Allows a maximum of 10 escrow items, in the categories of over/short adjustments, taxes, and insurance.
  • Provides current and next year analysis information online.
  • Lets you choose the number of months available for you to make any corrections or changes to the next period analysis.
  • Provides an option to run analysis and automatically generate notices to verify your adjustments for a specific account.
  • Lets you choose when an escrow item expires, so it is no longer included in escrow analysis.
  • Lets you decide if projections for disbursements due during the escrow verification period should be included in the escrow analysis (466 Report).
  • Provides an annual analysis, either on the anniversary date of the loan or at a credit union-defined time.
  • Performs a recalculation of escrow accounts during the month-end back-office cycle.
  • Provides a combined annual disclosure statement, which contains a history of the escrow activity and projections for the prior and coming years.
  • Provides information about any surplus, shortage, or deficiency in the escrow account.
  • Does not require that the loan be a mortgage loan or a monthly interest loan to have an associated escrow share account.

Automatic Escrow Processing

Automatic escrow processing occurs every time the member makes a payment and during the month-end back-office cycle. When the member makes a payment on an escrow loan type, the system will automatically deposit the escrow portion into the member’s escrow share account. During the month-end back-office cycle, the system will automatically perform an analysis of the member’s loan if the loan meets the analysis criteria.

The terms analysis and recalculation refer to the process executed during the back-office cycle by the Escrow Recalculation Report 465.