RC_LA_EA_300.1 Escrow Analysis
Member Price: $49.00
Nonmember Price: $79.00
Product Code: DL2-011112-WC-WPurchase
This is a single-family/residential course.
MBA Education is dedicated to accommodating today's busy professional by offering short, accessible learning programs that can be completed in less than an hour. Content in this course is derived from Escrow Essentials, which is no longer available for retail purchase.
In this course, we will examine escrow analysis, which is the process of determining whether monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due. Closing agents and lenders use escrow analysis when the loan is established to determine the required initial deposit into the escrow account and then annually throughout the life of the loan to determine whether an adjustment to the borrower’s payment is needed.
We will look at the impact of regulation on escrow analysis and management as well as discuss how regulations limit amounts collected when escrow accounts are established, including: amounts that may be collected during the life of the loan, initial and annual escrow statement requirements, restrictions on lender-placed insurance, and penalties for non-compliance.
We will look at some of the laws that govern servicers including the Real Estate Settlement Procedures Act, Truth in Lending Regulation, Equal Credit Opportunity Act, Gramm-Leach-Bliley Act, Electronic Funds Transfer Act, Homeowners Protection Act or The PMI Act, and Bankruptcy Laws.
We'll see that the required method of account analysis is the aggregate method, in which the account is treated as a whole. To determine a borrower's initial deposit to escrow, total required escrowed items are added together and prorated over 12 months. An amount sufficient to bring the lowest monthly balance up to zero is added, and the balance for all other months is adjusted accordingly. A cushion, usually two months' deposit, is then added.
We will define escrow shortages, surpluses, and deficiencies and how these are handled.
Next, we'll study initial and annual escrow analysis statements and what information they must contain and disclose and review a sample escrow analysis statement to identify a surplus or shortage, root cause, and cure.
Finally, we will lay out the steps involved in an escrow analysis, which begins with establishing the criteria for analysis and ends with coordinating with the appropriate teams within the organization.
Seat time approximately one (1) hour.