Create a New Escrow Account (Bucket)

General

Escrow accounts, or “buckets,” are created at the company level. Once a bucket is created, you will have the option to use it on all of your loans, although it won’t be required. When you create a new escrow bucket, you will set the default settings for that escrow bucket as well.

How To

To create a new escrow bucket, navigate to Settings > Loan > Escrow > Buckets.

Click Add.

There are two sections available when setting up an escrow bucket. The first is Setup Configurations. Here you will enter all of the basic information for the escrow bucket, including the  default settings for the bucket.

Enter a title for the bucket into the Title field. The title should help you distinguish this bucket from other buckets. The rest of the settings are set to the defaults. If you change these settings, your selections will become the defaults for this bucket on all of your loans. For more information about escrow settings, see  Update Escrow Account Settings. Once you’ve made your settings selections, click Save to save the escrow bucket.

If you are not in an industry that requires escrow analysis, you are done. Otherwise, fill out the information in the Analysis Configurations section. To see the Analysis Configuration section switch Escrow Analysis Enabled to "Yes".

The analysis configurations section consists of four sections: general, deficiency settings, shortage settings, surplus settings.

General

The general section lets you set the general analysis settings, which include:

  • Cushion – Choose whether the cushion amount for this escrow bucket should be a fixed amount or based on a percentage of the anticipated disbursement.
  • Fixed Amount – If “Fixed Amount” was selected for cushion, enter the fixed amount in this field.
  • Escrow Computation Year Start Date – Enter the start date for the computation year used for escrow analysis.
  • Next Escrow Analysis Date – Enter the next date on which escrow analysis should be performed.

Deficiency Settings

The deficiency settings let you decide how LoanPro should identify and deal with an escrow deficiency (less than $0.00 in the account at its low point).

The top section lets you specify items related to an escrow deficiency including:

  • Deficiency Delimiting DPD – This is the number of days past due the escrow account can be before it is considered deficient.
  • Deficiency Days To Pay – This is the number of days the customer will have to remedy the deficiency.
  • Deficiency Catch Up Payment Number – This is the number of payments for which the escrow amount will be increased in order to remedy the deficiency.
  • Deficiency Delimiting Amount – This selection will tell the system how to decide how much the escrow account cushion should be before it will be considered deficient. The options include:
    • Fixed Amount – The dollar amount of the cushion.  Any amount less than this will mean the account is considered deficient.
    • Percentage – This is the percentage of the yearly disbursement that the cushion should equal.  Anything less than this and the account is considered deficient.


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