Create Escrow Account

These steps explain how to open a new escrow account and connect it to a loan.

• Be sure you have opened the loan prior to following these directions.

1. Launch Tool #570 Open/Update Escrow Disbursement Records.

2. On the Work with Escrow Account Information pop-up, enter the account number and loan suffix to which you'd like to attach the escrow account.

3. Click the forward arrow.

4. On the Create New Escrow Account pop-up, select an appropriate Dividend application.

5. Select an appropriate Reason code.

6. Click the forward arrow.  

   • The system will assign the escrow account suffix.

7. On the Set Up Escrow Disbursement Record screen, click Add New to add a new escrow disbursement record to the escrow account.

8. On the Set Up Escrow Disbursement Record pop-up, enter an Escrow code.

9. Enter an Escrow payee code.

10. Click the forward arrow.

11. On the next Set Up Escrow Disbursement Record screen, fill in the required fields:

    • Total premium

    • Disbursement frequency

    • Premium due date

    • Disbursements payable to

12. Select a disbursement frequency of A (annual), except in the case of a PMI loan, which is usually monthly.

13. Click the forward arrow.

    • The Monthly due field will be calculated for you.

14. Click Add/Update.

15. On the Member Update pop-up, check the box labeled Also change member's loan payment immediately.

16. Click Continue.