How are escrow surpluses/shortages handled?
If the anticipated required balance on the Annual Escrow Disclosure Statement is greater than the reserve allowed, there is an escrow surplus. This surplus will be refunded within 30 days of the analysis date, if the account is current. If the required balance on the Annual Escrow Disclosure Statement is less than the reserve allowed, there is a shortage. The shortage will be divided by 12 and added to your payment for the next 12 months.
