Escrow Analysis
What’s in Your Leader Bank Escrow Analysis Statement?
What’s in Your Leader Bank Escrow Analysis Statement
At Leader Bank we’re dedicated to making sure you fully understand the ins and outs of your escrow account. Your escrow analysis statement is a complete review of your account that helps confirm there are enough funds to pay your insurance premiums and property taxes. This statement provides insight about the assessment of your escrow account and any resulting changes to your monthly escrow payment.
Below, we’ve provided a detailed explanation of the various sections you’ll see in your Leader Bank escrow analysis statement. If you have any questions about your statement, please don’t hesitate to reach out to our Client Services team at 781-641-8686.
1. Escrow Activity Summary
The escrow activity summary features a breakdown of the factors used in your escrow analysis to determine any changes to your monthly payment. This includes all expected and actual transactions during the previous 12 months including:
- Projected Payments: The expected amount for your monthly escrow payment.
- Actual Payments: The payment amount actually made and deposited into your escrow account.
- Projected Disbursements: The amount expected to be paid from your escrow account for projected property taxes and insurance premiums.
- Actual Disbursements: Funds actually paid from your escrow account for property taxes and insurance premiums.
- Projected Escrow Balance: Your expected escrow account balance based on projected monthly payments and disbursements Actual.
- Escrow Balance: Your escrow account balance at the end of the month based on actual monthly payments and disbursements.
2. Escrow Projection Summary
This section of the escrow analysis includes an estimate of activity in your escrow account during the coming year based on anticipated payments. The projection summary outlines projected payments, disbursements, and account balances for the next 12 months.
To perform the analysis the beginning balance is compared to the required balance to ensure there are enough funds to cover property tax and insurance premiums and meet the Escrow Reserve Requirement for your account.
3. Projected Disbursement Summary
The Projected Disbursement Summary is the projected amount of taxes and insurance to be paid over the coming 12 months based on what was owed during the previous year. The reserve section is a two-month period that a lender is permitted by Federal Law to keep in your escrow account. The reserve helps cover any unexpected increases in property taxes and insurance.
4. Escrow Analysis Summary
The Escrow Analysis Summary details whether our analysis indicates a projected surplus, shortage, or deficiency of funds to cover your expected property tax and insurance premium payments. A surplus occurs when your tax and/or insurance payment was less than what we anticipated. If there is a projected surplus of $50 or more, Leader Bank will send you a check for that amount. A shortage means your tax and/or insurance payment was more than what we collected in your monthly mortgage payment for the previous 12 months. A projected shortage can be paid over the ensuing 12-month period or you can pay the shortage in full by the date indicated on the statement. A deficiency occurs when there is a negative balance in your escrow account because the Bank has had to advance funds to cover disbursements.
5. Payment Change
The Payment Change section identifies the difference between your previous monthly payment and your new monthly payment. It includes a breakdown of your old and new principal, interest, escrow, and total payment.
- Previous Monthly Payment: This outlines your previous monthly payment amount prior to the escrow analysis.
- New Monthly Payment: Your new payment amount if you pay a shortage or you elect to make up the shortage over the next 12 months.
- Escrow Payments: These are payments made for your property. taxes and/or insurance premiums
6. Escrow Shortage Payment Notice: This section indicates your escrow account has a shortage for the amount listed here
Please Note: Leader Bank does not control the actual amount of our clients’ tax and insurance bills. Please contact your insurance company or local insurance agent if you have questions about changes to your premium or local tax office if you have questions about your tax amount.
If you have any questions or concerns about your Leader Bank escrow analysis statement, please don’t hesitate to reach out to our Client Services team at 781-641-8686.
