Mortgage & Home Equity Loan Annual Escrow Analysis Q&A
The Tax and Insurance Account Disclosure Statement will be mailed to all mortgage or Home Equity loan borrower’s by January 31, 2018. The statement outlines the annual escrow analysis, which considers changes in property taxes and insurance in the past year.
- The new adjusted payment is effective with the March 1st payment
- Escrow Shortages/Deficiency: Borrowers may choose to pay the shortage in a lump sum before February 16, 2018:
- The shortage amount may be deposited to the savings account and Member can deposit the lump sum owed into their savings account and contact the Mortgage Servicing department to process the payment.
- New coupon books will be mailed separately for those loans not paid online or through auto transfer.
- Mortgage Tax Forms – The 1098 tax forms will be mailed by January 31, 2018. These forms will indicate the interest amounts and real estate tax paid in 2017. Property taxes will not be included on the 1098 tax form but will be included in the Tax and Insurance Account Disclosure Statement.
Frequently Asked Questions
Q: Why did my mortgage payment increase?
A: An escrow analysis is completed annually and the change reflects the projected annual cost of taxes and/or insurance based on the 2017 costs. The payment may go up or down, depending on the activity in 2017.
Q: My analysis stated that I had excess, when will I get a refund?
A: If the 2017 taxes and/or insurance were less than the escrowed amount, the analysis will indicate a surplus. Surplus funds in excess of $50.00 will be deposited into the borrower’s savings account by January 22, 2018.
Q: My analysis shows I still have a balance in my escrow, but also that I have a shortage or deficiency to pay?
A: The balance in your escrow is the cushion the credit union retains annually in your escrow. The shortage and/or deficiency is what is needed to bring the cushion back to the amount needed by the credit union to ensure of future payments.