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# How do I add escrow property costs?

For an assumption transaction, there are three ways to enter escrow items. If the assumed transaction already has escrow, it will need to be retained at the time of the assumption. If the transaction does not already have escrow at the time of the assumption, but it is an HPML transaction and escrow is needed or required, escrow will need to be added at the time of the assumption. If the assumed transaction already has escrow and needs to add new escrow items, existing escrow will be retained and new escrow can be added.

- Existing escrow - For an assumption transaction where there is an existing escrow account,there will be an automatic transfer of the escrow account to the new parties. Any reimbursement from the new parties to the existing parties for the existing escrow reserve amounts will need to take place outside of the assumption transaction. In this type of scenario there will be no Escrow Reserves entered into ComplianceOne and Escrow Reserve information will not flow to the Loan Estimate and Closing Disclosure. If an existing escrow account is being transferred to the new parties, select Existing Escrow Account Transferred – No New Escrow. This will ensure that any escrowed fees will only appear as part of the payment amount and will not be included in Escrow Reserves, but will flow where applicable on the Loan Estimate and Closing Disclosure.
- New escrow - For an HPML being assumed, escrow is required if it does not already exist or if it does not have all applicable costs escrowed. In this case, additional escrow will need to be added. All escrowed item amounts will be included in the initial escrow disclosures such as Section G of the Loan Estimate and Closing Disclosure. If a HOEPA/HPML check is run through Wiz Sentinel then the High Priced Mortgage Loan check box will be checked if the loan is determined to be an HPML loan. If Wiz Sentinel is not used, the user will need to manually check the High Priced Mortgage Loan check box if applicable by going to Document Data and selecting the checkbox on the Note.
- Combined Existing and New Escrow - For an assumption transaction where there is existing escrow to be transferred to new parties and new escrow required. A new check box Existing for each escrow item. If the check box Existing is not selected, then the escrow fee would be included in Prepaids Section and the Initial Escrow Payment at Closing Section. Then in the Escrow Account Section of the Closing Disclosure, all escrowed items would be included in the total for Escrowed Property Costs over Year 1 and only the escrowed items with the Existing check box not selected would be included in the Initial Escrow Payment.

Escrowed Private Mortgage Insurance (PMI) will have a row in the Property Costs table with a description of Mortgage Insurance. This escrow item will not be editable in the table. To change the escrowed PMI, make the appropriate changes in the PMI section.

Click Calculate to update the Calculation Results, Fees, Reserves Deposited with Lender and Initial Escrow Schedule based on changes to the escrow items.