Initial escrow deposit

Question:

Occasionally, the secondary market makes us collect too much money at closing (13 months, for example). Just to clarify, at closing we can collect a 2-month cushion, the balance determined by the aggregate analysis, and anything due before the start of the escrow account computation year. Correct?

Answer:

Not quite. The 2-month cushion should already be factored into the aggregate analysis balance. Thus, you can collect the balance determined by the aggregate analysis and anything due before the start of the escrow account computation year (first loan payment date). Anything due after the first payment date needs to be included in the escrow account.
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Learn more about David Dickinson’s webinar Escrows: All you need to know