A series of projects are in the works to enhance Escrow Analysis processing in CU*BASE. The Escrow Analysis provides an annual review of a member’s escrow account to ensure that enough funds are collected to pay upcoming installments of insurance premiums and/or property taxes.
Archive the Escrow Analysis Disclosure to CU*Spy
When an Escrow Analysis Statement is created via Tool #297 “Create Escrow Analysis”, the output will now archive as a report to CU*Spy.
Status: PS#52677 was implemented on 6/4/2020. NOTE 12-29-2021: Following the formatting enhancements implemented with the 22.10 release, there was a brief period where the new format prevented escrow statements from being archived. (Read the alert.) This has been corrected by simplifying the printed output to no longer use special font formatting such as boxes and lines. We will continue to work toward restoring these features once we can reconcile them to how our archival process works.
Escrow Analysis Format Enhancements
The new format for the CU*BASE Escrow Analysis Disclosure Statement was intended to make the statement easier to understand and more member-friendly. We added new details as required by RESPA, expanded the CU-defined comments area that prints at the bottom, began storing the projected amount to be disbursed so we could display both projected and actual paid amounts, broke out anticipated annual disbursements by collateral definition type, added a coupon page for payment of a shortage, and changed the layout so the address will fit into a standard window envelope for easier mailing.
Status: PS#54127 was implemented in the 21.10 release. NOTE: Following implementation there was a period when the new format prevented escrow statements from being archived. (Read the alert.) This has been corrected by simplifying the printed output to no longer use special font formatting such as boxes and lines. We will continue to work toward restoring these features once we can reconcile them to how our archival process works.
Other projects in the works for Escrow Analysis Statements:
- Adjustments to how the PMI figure appears in the history section (to show a monthly premium instead of an annual figure).
- Adding totals to the amount columns.
- Minor tweaks to the coupon section, including addressing a formatting error when there is a PO box in the address, and removing the date from the shortage payment verbiage.
Status: Project #58022 was implemented in December 2022.
Preview Dashboard for Escrow Analysis
Today, if you want to preview the Escrow Analysis prior to printing, you must print all the pages for review. This can produce a lot of output, therefore wasting paper. With this project, you will be able to preview the list of accounts for which Escrow Analysis statements will be created via a new dashboard. From this dashboard, you can review both the projections and the history for the account and research the account via Account Inquiry. Adjustments can be made prior to running the final Escrow Analysis.
Status as of February 2023: Project#57215 is in QC testing and is targeted for the 23.05 release.
New Option to Pay Escrow Analysis Surplus by Check
This project adds the ability to pay Escrow Analysis surplus funds to the member via check. Today for surplus amounts over $50, the only choice is to automatically transfer the funds to the base share account. For surplus amounts under $50, the choices for excess funds are to leave the money in the escrow account or transfer to the base share savings account. With this project, the CU will be able to choose the option to pay pay the surplus funds via check.
Status as of February 2023: Project #58074 is currently waiting for availability of programming resources.
Create Flat File for Statement Vendors
This project creates a flat file that gathers Escrow Analysis data similar to how data is gathered into a flat file for regular and credit card member statements. The Escrow Analysis flat file can then be provided to a statement vendor for formatting and printing.
Status as of February 2023: Specifications have been submitted for PS#60153
Remove Reference to Lump Sum Payments from Shortage Version
This project updates the shortage version of the Escrow Analysis statement to remove any reference to “lump sum payment”. This is due to the Consumer Financial Protection Bureau (CFPB) interpretation of the section in Regulation X that explains how shortages or deficiencies are to be paid by the borrower. Although members are allowed to make lump sum payments for shortage or deficiency amounts, the option to do so should not be explicitly stated on the Escrow Analysis.
Status as of February 2023: Specifications have been submitted for PS#60175
Chefs for this recipe are Karen Sorensen and Connie Plas
One of the new details added states in part “began storing the projected amount to be disbursed so we could display both projected and actual paid amounts,”
It seems this covers this requirement from the reg 1024.17(i) that states “The servicer shall also submit to the borrower the previous year’s projection or initial escrow account statement.”
Is this correct, If so when will the previous projected amount appear on escrow statements? We had a Compliance audit in December and an Escrow statement from October did not have this information.
Thank you,
BArb
The most likely explanation is that you ran your reports prior to the 21.10 release being deployed (on Oct. 3). We ran a conversion at that time to populate a projected amount using the payment history as a guide, or if there was no history, using the total annual figure for that payee.