Create a New Escrow Adjustment


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.

Creating a Escrow Adjustment

To create an escrow adjustment, navigate to Loan Settings > Escrow > Adjustments inside a specific loan. Make sure you select the correct escrow account and that you are on the adjustments tab.

Click 'Add' to add a new adjustment.

Choose the payment period and date when the adjustment will start to take effect from the “Period # & Date” drop-down. The drop-down displays future Periods according to the schedule and the “Other” option,  which allows you to manually enter a period number, even one outside the current schedule. Enter the amount that will come due with each payment for this escrow account into the “Amount” field. Enter a description for the adjustment into the “Description” field. Click 'Save' to save the adjustment.

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