Is an annual escrow account analysis required prior to the permanent phase of a one time construction to permanent loan kicking in?

i.e. if the construction phase takes more than a year, can an escrow account analysis be conducted at, say, a year and one month when the permanent phase begins instead of after one year and then again one month later?

It appears that we require escrow during the construction phase of our one time closing const-perm loans. Does this mean that the computation year starts at the time construction begins?

The topic of escrows on construction and perm loans is a complicated one. Most banks don't require escrows until the perm phase begins because the insurance and taxes will be going up so much. However, you can certainly make it a requirement of your loan agreement.

Does this mean that the computation year starts at the time construction begins?
The escrow account computation year begins with the first payment and runs for 12 months following.

The topic of escrows on construction and perm loans is a complicated one.

LOL. You're telling me David. It is made more complicated by the fact that we do a one time close AND require escrow during the construction phase.

I'm confident our process is compliant after careful review. Loan Servicing was looking for a way to simplify escrow analysis when a construction loan runs over the allowed 12 months, but there is nothing that can be done short of eliminating the requirement for escrow during construction.

Thank you for your input David. It is very much appreciated as always.