How do I read my Escrow Account Disclosure Statement?

Your Escrow Account Disclosure Statement may look a little different from the screenshots below, however, the content is the same.

Escrow Activity for the Prior Year

This section lays out the expected and actual escrow transactions for the previous 12 months.

In the above example, both the property taxes and insurance increased so the amount projected is less than the amount disbursed.

Escrow Projection for the Current Year

This section calculates the new escrow payment based on the current property tax bills and insurance premiums.

Payment Change for the Current Year

This section breaks down the new payment.

The T&I Payment is from the Escrow Projection section which is based on your current property tax and insurance invoices.

The shortage is calculated using 3 factors: The difference between the Projected and Actual T&I payments, the Projected and Actual T&I Balance, and the required low point.