Upcoming Escrow Analysis Cycle: What It Means For You

January 28, 2020

Each year, ServiSolutions analyzes escrow accounts to ensure adequate funds exist to pay for taxes and insurance. After escrow analysis is complete, we will send you an escrow account disclosure statement by mail. Below is the schedule for your state:

• Alabama: statements out in February, changes effective with March 1 payment
• Mississippi & Missouri: statements out in March, changes effective with April 1 payment 
• North Carolina: statements out in April, changes effective with May 1 payment
• Arkansas & Washington: statements out in July, changes effective with August 1 payment

An escrow analysis is an audit of receipts and disbursements for your escrow account to determine whether adequate funds exist to pay for taxes and insurance. Increases or decreases in your annual tax or insurance bills may cause your monthly mortgage amount to change.

The beginning Escrow Required Balance includes the disbursement of any overage reported or repayment of all shortages and/or deficits. The maximum low point by Federal Law (RESPA) is 2 monthly deposits (1/6) of your total annual disbursements from your escrow account. However, if your loan documents or state law specifies a lower minimum balance, this lesser amount will be the allowable low point for your account.

If bills paid from your escrow account before the escrow analysis were higher than expected, your account may have a shortage. Shortages are recovered by automatically prorating the shortage over 12 monthly payments. You also have the option to pay the shortage in full to limit any increase in your monthly payment.

Attention Customer CareNet users: 

Your disclosure statement will sepcify which month any changes will become effective. 

You have the option of paying the shortage in full along with your regular monthly payment. If you elect not to pay the full shortage, be sure to remove the shortage before confirming your payment.

If bills were lower than expected, your account may have an overage. If the overage is $50.00 or more, it will automatically be refunded to you unless the account is delinquent. The overage checks are mailed separately and should be received a few days prior to the effective date. If the overage is less than $50.00, we will lower your payments accordingly.

If you have questions about changes to the tax or insurance amounts shown on your escrow analysis statement, please contact your county tax collector or insurance agent.

If you expect your tax and or insurance amount will change in 2020, please have supporting evidence of the new amounts and contact Customer Service to discuss reanalyzing your account to calculate the appropriate payment.