# Create a New Escrow Adjustment

### Introduction

Escrow adjustments are the bread and butter of the escrow system. When you create an escrow adjustment, you specify when and in what amount escrow will come due on a loan.

An escrow adjustment consists of two pieces of data: the payment period when the escrow amount will start to be added to payments, and the amount that will come due with each payment. When you enter an escrow adjustment, it will affect all payments from the payment period you enter forward.

So, for example, if you have an escrow adjustment in period 1 on a loan in the amount of $5.00, it will increase the amount of each payment starting with the first payment in the amount of$5.00. If you want escrow to come due for only the first two periods of the loan, you will have to enter a second escrow adjustment in order to stop escrow from being added to the remaining payments. In this case, the second adjustment would be for payment period 3 in the amount of $0.00. This will let the system know that starting in payment period 1,$5.00 of escrow should come due on each payment, but from period 3 on, \$0.00 should come due in escrow.

You can create several escrow accounts or ‘buckets’ within your company and add adjustments per loan for as many or as few of them as you want to.