Configuring Escrow Payees (2)

Screen ID: 

Screen Title: 

Panel Number:

UESCPY-02

Configure Escrow Payee Information

4353

Click here to magnify

 

Access this by selecting to add a payee, change a payee, or view a payee on the first Escrow Payee configuration screen.

Helpful Resources

Escrow Processing with CU*BASE.

I am printing a check to an escrow payee on the screen accessed through Tool #342: Disburse Funds to Escrow Payee. I add my check printer ID and remitter and the screen freezes. Why is this happening and what is the corrective action?

 

Screen Overview

This screen lets you record information about the payee, including details about how payments will be processed to this particular organization.  Payments can be made via check or by way of an internal transfer to a designated G/L settlement account, for settlement via wire or other method.

 

When you have completed making changes, use Save/Update to save the changes made to the screen.

  • TIP: Use Last Comment (F11) if you have more than three lines of comments, to scroll to the last line quickly.

Field Descriptions

Field Name

Description

Payee name

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

Street address
Address 2
City/State/Zip

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

Phone

Enter a contact phone number (informational only).

Fax

Enter a fax number (informational only).

Contact

Enter a contact name (informational only).

Cushion # of months

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.

Disbursement method

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.)

Clearing G/L account

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

Bank ID

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.

Branch

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).

ACH routing #

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.)

Automatically advance due date

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). 

Automatically advance policy expiration date

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.

Sort disbursement list by

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. 

You can choose to sort by Account #, Name, Policy # or Tax ID but keep in mind that the primary sort is based on who the disbursement check is payable to (member, payee or both) per the escrow disbursement record (tax, insurance/private mortgage and other).
  • 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. 

Note: If the sort is by Account # or Name and the disbursement record contains both a policy number and a Tax ID (I=Insurance, P=PMI format types only), then policy number will display instead of the Tax ID.

Comments

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

 

Buttons

Button

Description

Last Comment

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

Add/Update

Use to save changes made on the screen.