Adding Escrow to a Transaction

Select the Loans in Process node from the Loans menu.

The Loans in Process screen appears.

Create a loan transaction with escrow.

Select the Escrow node.

The Escrow Charges screen appears. Escrow fees selected for the applicable product type appear on this screen.

Select the

Edit icon next to the escrow charge.

The Charges tab appears.

Enter an amount in the Amount to be Paid Out field.

Select the Frequency from the drop-down menu.

The menu options are: Annually, Twice a Year, and Monthly. Different screens appear for each selection.

Select the POC (Paid Outside Closing) and/or the Paid by Seller fields, if required.

Note Values that appear in # of Payment Periods for Reserves, Monthly Payment for Reserves, and Total Reserve Amount fields are determined by the information entered in the Amount to be Paid Out field and the Frequency that is selected. This information automatically populates if the parameter on the Loans tab in Institution Settings is selected.

POC

The POC (Paid Outside Closing) option is not available when the Frequency is Monthly.

If the escrow disbursement is annually, the POC option is selected, and the Allow OnBoard to AutoCalculate Escrow Reserve for Monthly Reserves (2 month cushion will automatically be included) parameter is selected on the Administration > Institution Settings > Loans > Miscellaneous tab, the following information applies:
- The # of Payment Periods for Reserves field is always 2 for the POC item, and no automatic calculation occurs.
- The Number Months for Cushion is always 2.
If the escrow disbursement is twice a year, the POC option is selected, and the Allow OnBoard to AutoCalculate Escrow Reserve for Monthly Reserves (2 month cushion will automatically be included) parameter is selected on the Administration > Institution Settings > Loans > Miscellaneous tab, the following information applies:
- The # of Payment Periods for Reserves field is available for input and is not calculated by the system.
- The Number Months for Cushion is available for input and does not default.
Note In this scenario, an icon appears next to the POC option with the following warning message: When escrow disbursement is POC and made twice a year, both reserves and cushion will need to be determined by user.

Select Save.

Repeat steps 4 through 8 for each escrow charge.

Return to the main Escrow Charges screen.

When required, select one or all of the following, which appear on the main Escrow Charges screen.

Lender Will Not Service the Loan: When you select this check box, the Servicer Info tab becomes active displaying the Entity Type, Name, Address, City, State, Postal Code, and Telephone Number fields.
Escrow Is Required for This Loan: When you select this check box, information is added to customer documents and an additional check box, Provide Separate Agreement for Escrow Terms, appears.
Finance Initial Escrow Deposit: When you select this check box and click Save, a disbursement record, which increases the loan amount, is created for the amount of the initial escrow deposit in the Terms node. Terms is then automatically recalculated.

Select Save once all information for the escrow charge is entered.