The escrow functionality is designed to let you add additional amounts to regularly scheduled payments that don’t apply to any other important part of the loan (e.g. interest, principal, discount, fees, etc.). This functionality is intended for use in collecting amounts that will apply to things like insurance or taxes, but an understanding of the escrow functionality in LoanPro can make it a very powerful tool that will help you customize the system to your needs.
Inside of LoanPro, escrow accounts are often referred to as escrow buckets. Each escrow bucket has three main sections: transactions, adjustments, and settings. Escrow accounts or buckets are set up at a company level.
You can customize each escrow bucket inside of each loan so that the bucket will have the right settings and collect the correct amounts. Escrow adjustments let you specify a payment period on the loan and an amount. From the specified payment period forward, the specified amount will come due for that bucket on that account unless another adjustment is entered for a future payment period.
Transactions let you manually enter a transaction for the bucket. The intent here is that if you are collecting something like an insurance premium using the escrow bucket, you can record the transaction when the premium is paid.
There are several escrow settings that will determine how much should come due for the bucket when the account is paid off, if the bucket should be included in APR, if the amounts assessed for the bucket should be interest bearing, etc.