Escrow Analysis Tab

Escrow information for individual homeowners may be reviewed on the Escrow Analysis screen.

Specific information related to the homeowner's escrow obligations is displayed on the Escrow Analysis tab. Information on this tab includes details of the total annual liability of the homeowner, the balances, and the adjustments to be made in escrow payments taking into account RESPA requirements and the cushion allowed. These are discussed in more detail in the Escrow Management Guidelines section.

You may wish to review the Introduction to Escrow Analysis section prior to performing escrow analysis.
Merge Escrow Payees prior to performing Escrow Analysis.
Run the Preliminary Exceptions reports (available on the Reports screen at Finance > Escrow Management > Escrow Analysis > Preliminary Exceptions) and make any necessary corrections prior to performing Escrow Analysis.

Keystone uses the Annual Liability as computed on the Escrow Admin tab on the Mortgage/Payment Information screen. Thus, any forecasted Next Payment Amount and Annual Liability are used for the escrow analysis.

You can custom position this screen by dragging it to the desired location and clicking the @.

Annual Liability pane

This pane shows the amount the homeowner owes each of the listed escrow recurrent payees this year, and the projected owed amount for next year. This allows Keystone to compute the total homeowner liability each month to cover all escrow obligations at the appropriate times during the year.

Hovering the cursor over any number will provide an explanation on how that number was derived.

Field Name	Type	Description
Escrow Payee	Read-only	All escrow payees linked with the homeowner selected in the Name(s) field are listed in this column.
Category	Read-only	The corresponding escrow category for each escrow payee is listed in this column.
This Year (Liability)	Entry	The amount the homeowner owes the payee for their escrow obligation to them this year.
Next Year (Liability)	Entry	The projected amount the homeowner will owe the payee for their escrow obligation to them next year.
Total Annual Liability	Read-only, calculation	The total of all escrow liability the homeowner has for this year. (The sum of all amounts in the This Year column)
Monthly Liability	Read-only, calculation	The Total Annual Liability divided by 12.
Allowable Annual Cushion	Read-only, calculation	The amount you can have as a cushion in escrow for this homeowner for any liability changes that may occur over the next year. The calculated value is two months, which is calculated as the Monthly Liability times two.
Current Escrow Due	Read-only	Shows how far ahead or behind the homeowner is on planned (required) escrow payments. This value can be used to adjust the Estimated [Month] Beginning Balance to show the effect of the next payment. If the homeowner is behind, add the amount to the estimated beginning balance to prevent overpayment. If the homeowner is ahead, deduct the amount from the estimated beginning balance if the goal is to prevent a refund in case the homeowner wants to be paid ahead on escrow.

Target Monthly Payment pane

This pane shows calculations based on the homeowner's liability and current monthly escrow payments. This illustrates how much you need to adjust the monthly payment in order to keep the homeowner's account balance at the right place to meet all of their escrow obligations during the year.

Hovering the cursor over any number will provide an explanation on how that number was derived.

Field Name	Type	Description
Target Monthly Payment	Read-only, calculation	How much the homeowner should be paying monthly to meet their escrow obligations adequately.
Current Monthly Payment	Read-only, calculation	What the homeowner is currently paying each month to escrow.
Monthly Adjustment to Reach Target	Read-only, calculation	The amount the monthly payment should be adjusted to meet the Target Monthly Payment. This is the Target Monthly Payment minus the Current Monthly Payment. Negative amounts are enclosed by parentheses and mean the homeowner is currently paying more than is needed each month into escrow. The percentage difference between the Target Monthly Payment and the Current Monthly Payment is shown to the right of the Monthly Adjustment amount. The adjustment here exists because the sum of the projected disbursements for the year either exceeds or falls short of the current sum of monthly payments.

Escrow Account Balance pane

Displays a series of calculations that show whether the homeowner's escrow account payments and cushion during the year are adequately meeting cash flow based on their escrow obligations and when they are due.

Hovering the cursor over any number will provide an explanation on how that number was derived.

Field Name	Type	Description
Required Beg. Balance for (Month)	Read-only, calculation	This is the calculated amount that the homeowner should have as their escrow balance in order for escrow disbursements to be made to the payees without creating a negative balance situation in the homeowner's escrow account at any point during the year. If you double-click the highlighted Required Beg. Balance for Month or the Month Beg. Balance with Cushion values, the Escrow Calculator window will appear showing projected escrow account cash flow for the year following the Effective Date shown on the Escrow Analysis Setup screen. If you hover the cursor over a month in the Dis.(Disbursement) column, Keystone will display the names of escrow payees who will be paid in that particular month. The lowest value in the Cush. Bal. (Cushioned Balance) column is highlighted in blue. If this value is below $0, that means you would be using affiliate money to pay a homeowner's obligation that month. If you have selected a cushion on the Escrow Analysis Setup screen, this value will generally be approximately equal to the cushion you have selected. If your affiliate decides to take several years to build the escrow cushion, then the value will not be the cushion until this goal is met. Keystone allows you to view the Escrow Calculator and the Escrow Affiliate Plan calculation windows at the same time, if needed.
(Month) Beg. Balance with Cushion	Read-only, calculation	This is the Required Beg. Balance for the month that begins the analysis period, plus the affiliate cushion amount shown in the Affiliate Annual Cushion field. If you double-click the Required Beg. Balance for Month or the Month Beg. Balance with Cushion values, the Escrow Calculator window will appear showing projected escrow account cash flow for the year following the Effective Date shown on the Escrow Analysis Setup screen. If you hover the cursor over a month in the Dis.(Disbursement) column, Keystone will display the names of escrow payees who will be paid in that particular month. The lowest value in the Cush. Bal. (Cushioned Balance) column is highlighted in blue. If this value is below $0, that means you would be using affiliate money to pay a homeowner's obligation that month. If you have selected a cushion on the Escrow Analysis Setup screen, this value will generally be approximately equal to the cushion you have selected. Keystone allows you to view the Escrow Calculator and the Escrow Affiliate Plan calculation windows at the same time, if needed.
Balance On (Date)	Read-only, calculation	The homeowner's escrow balance as of the most recent posted payment.
Estimated (Month) Beg. Balance	Entry, calculation	The homeowner's estimated balance in the month shown.
Escrow (Shortage)/Surplus	Read-only, calculation	The amount the homeowner is projected to be behind or ahead in the month shown compared to the (Month) Beg. Balance with Cushion amount.
Monthly Balance Adjustment	Read-only, calculation	The amount the homeowner's payment would need to be adjusted in order to meet the (Month) Beg. Balance with Cushion amount, and make the Escrow (Shortage)/Surplus zero. The adjustment here exists because the homeowner's current escrow balance is either too small or too large to equal the necessary cash flow with cushion during the projected course of the year.

Other fields on this screen

Field Name	Type	Description
Total Potential Monthly Adjustment	Read-only, calculation	The total of the two monthly adjustment fields above.
Current Principal (Shortage)/Surplus	Read-only, calculation	The amount the homeowner is currently behind or ahead on their principal.

For more on rules relating to escrow analysis and calculations, refer to the Escrow Management Guidelines section.