Set Up Escrow Disbursement Record

Description

Enter the total annual amount. The most common disbursement frequency is one payment per year. However, even if the Disbursement frequency selected is other than “A” for annual, the amount to enter in this field is the annual total tax, premium, or amount.

Enter a code to indicate how often this payment needs to be made. When payments are processed, the system will advance the due date ahead according to this frequency setting (if configured to do so in the payee code). The most common frequency is annual for a once-a-year payment.

These are the same frequency codes used when setting up loans.

Tips Regarding Frequencies Other Than Annual

If the frequency is anything other than Annual, the system will assume the amount entered is an annual total, and will automatically calculate the Monthlydue by dividing that total by 12 months. When processing the payment, the system will use the frequency to determine how much of the total is due with that payment, and to move the due date ahead.

For example, if the frequency is Semi-annual (twice a year) and the total due is entered as $1,200, the monthly due will be calculated as $100. When a payment is processed, the payment amount will be $600 (half of the total), and the due date will be moved forward six months at which time the remaining $600 would be due.

In the event of frequencies such as a 3-year flood insurance policy, the total premium amount is divided by 36 to span the entire period.

Enter the date on which the next payment is due to this payee. It is recommended that you set the due date for the month the bill becomes available.

If this field is left blank, the system will automatically calculate it by dividing the total amount by 12 months. (Use Enter to perform this calculation and view the results before saving.)

If you wish, you may modify this amount and the system will use your amount instead of a calculated one. This would be helpful if you want to round payments up to the nearest dollar to keep the escrow total as a whole number.

Optional informational field; applies mostly to the insurance format but can be used for any purpose.

This field is not currently used.

For tax information, this field should be used to record the Tax ID number to which these taxes apply.

HINT: Use F10-Collateral to look up a Tax ID number on an existing collateral item for this loan, or to create a collateral record now.

To copy the ID from that collateral item to the escrow screen: first highlight the ID on the collateral screen (the characters should appear blue), right-click and choose Copy. Return to the escrow screen, right-click in the TIN field and choose Paste.

This allows the credit union to select who to disburse the check to: payee, member or member and payee. If member or member and payee are selected, the check will be mailed to the member’s address.

If the member is currently at an alternate address, the check will be mailed to that location.

When the checks for a payee are processed, the screen will indicate how many checks will be disbursed to each payee option.

Optional informational field; applies mostly to the tax format but can be used for any purpose.

Optional informational field; applies mostly to the tax format but can be used for any purpose.

Use these fields to enter any miscellaneous instructions, procedures, or other comments about this escrow payment detail.