Configuring Escrow Payees (2)

Description

Enter the payee name.  If paid via check, this name will appear on the printed check.

Enter the payee’s full address.  If paid via check, this information will appear on the printed check.

Enter a contact phone number (informational only).

Enter a fax number (informational only).

Enter a contact name (informational only).

(Required field.) Valid entries are 0, 1, or 2 months, depending on the amount of cushion you choose to hold. RESPA allows up to 2 months of escrow deposits to be collected and held annually. 

• Important:  This field is entered on the payee record, but the number must be the same for every payee.  Enter the number of months cushion based on your escrow policy.  If, however, this payee is for Private Mortgage Insurance (PMI), the cushion must be set to zero months.

Choose one of the following to designate how payments to  this payee should be processed:

Check(C) Choose this if you want to cut a check to this payee and send it along with the report when processing escrow disbursements.  (Also specify a Clearing G/L account, Bank ID and Branch.)

G/L(G) - Choose this if you want to transfer funds to a G/L settlement account in order to handle payment through another means (such as a wire transfer) for this payee.  (Also specify a Clearing G/L Account.)

Enter the G/L clearing account number (used by both disbursement methods).

If paying via check, enter the Bank ID to use when producing the check. Click the lookup button  to see a list of your credit union’s configured IDs.

This field is not currently used.  When payments to the payee are posted, the offsetting G/L transaction will use the branch/location number from the person who posted the transaction (the “teller” branch).

Use this field to record an ACH Routing & Transit number to be used when sending money to this payee via ACH or wire.  (Informational only; not currently used by CU*BASE.)

Check this box if the due date on all individual escrow payment records should be advanced one period automatically whenever a payment is posted to this payee. 

• In some cases you may wish to remove this checkmark and then manually change due dates on each individual escrow record when you receive proof that payment has been received by the payee (such as when paying taxes). 

This box defaults to checked which indicates to automatically advance the policy expiration date one period when escrow disbursements are processed for insurance and PMI escrow types.  In addition to updating the expiration date on the payee record itself, the system will also advance the insurance policy expiration date on the first collateral record attached to the loan account. (This will overwrite any expiration date already on the collateral record and since only one of the collateral records will be changed, you may need to monitor and adjust additional collateral items manually as appropriate).

• If you do not want the policy expiration date to be automatically advanced, then remove this checkmark.  You will then need to use the unlock feature to manually update the policy expiration date when processing the escrow disbursement.

This lets you decide how the list of escrow accounts will be displayed when disbursing funds to this payee.  This should match whatever sort order will be used on the invoice or statement you receive from this payee. 

• For example, payments to a city tax assessor might be easiest to handle if the accounts were listed in order by Tax ID number, to match the invoice you receive for all tax bills due. 

Use these lines for miscellaneous procedures, instructions, or other comments about this payee.

Description

Use if you have more than three lines of comments, to scroll to the last line quickly.

Use to save changes made on the screen.