Handling Escrow on Your Loans – 2 of 3

How to do Escrow in Moneylender

Check out part 1 of this Series – The Rules for Lenders

Moneylender can happily determine the correct amount to add to each P&I payment so your escrow balance conforms to the regulations.  Moneylender already knows the payment schedule and can determine how many payments will post to the loan in each month.  You will need to tell Moneylender when you expect to disburse money from the escrow account, and how much you expect those disbursements to be.  For tax reporting purposes, Moneylender also needs you to categorize the disbursements into Property Tax, Property Insurance, Mortgage Insurance or Other.

To do this, you select the loan, visit the settings tab on the right and click Escrow Account.  From here we see all the pertinent information including the escrow balance, upcoming disbursals, and the current and future escrow charges.  Click Manage Disbursements to add, change or confirm the money you have or will be paying out of the escrow account.  If the payment happens every month or year, be sure to set the recurring option to simplify the process of managing escrow year-after-year.

Once the disbursements are set, you can click Adjustment Calculator to run all the RESPA routines and determine the recommended settings for the upcoming 12 months on the loan.  While most lenders will adjust the escrow after the last payment from the previous year is received, you can perform an escrow analysis as often as you like, and any time during the year.  If it has been many years since you changed the escrow amount, now is the perfect time to make an adjustment.  If your loan contract includes wording for when escrow analysis is performed, be sure to follow the contract.

Click Set next to the amount that seems right to you (more about the different suggestions in Part 3 of this series).  Click the printer button next to the amount you want to use to print or send an escrow adjustment letter to your borrower.

For detailed information about how different parts of Moneylender’s escrow system work, check out the Escrow pages of the User’s Guide:

Escrow Account Window

Manage Disbursements - Escrow Account

Escrow Disbursement

Escrow Charge Calculator

Manage Escrow Charges

Escrow Charge

Coming up: Part 3 – Special Situations