Escrow 101 – Part 2 of 3

By Michael J. McCormick, Esq., McCalla Raymer Leibert Pierce, LLC (Roswell, GA)

The Escrow Analysis

For purposes of Regulation X, an escrow analysis is the accounting that a servicer conducts in the form of a trial running balance for an escrow account to:

  1. Determine the appropriate target balances;
  2. Compute the borrower's monthly payments for the next escrow account computation year and any deposits needed to establish or maintain the account; and
  3. Determine whether shortages, surpluses or deficiencies exist.

In general, there are five steps in . . .

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