Outline – Training – Generating an Escrow Analysis Document

Escrow Analysis Module - https://bryt-product-guide.document360.io/docs/escrow-analysis

Setup

1.  Start by ensuring the Escrow Analysis and 'Register' modules are enabled under B3 Admin and that proper user claims are assigned
2.  Download the two document templates for this process and upload them to 'Admin - Document Templates'
   1.  Review the Custom Document module process if the user is unfamiliar
   2.  Download and upload the two document templates below:

Getting Started
Explain the difference between the two Escrow Analysis options at the start - 

1.  'I need to make an initial escrow analysis to determine both the closing amount due for escrow and the monthly escrow payment.' - You'll use this option when starting a new loan in Bryt. Using this option, you will add your Escrow Fee Types, Projections for those to be included in the analysis, and a cushion. Bryt will then generate an initial escrow analysis document with a projected schedule of escrow-related dues and a calculated cushion amount to be collected at closing (which is added via the register's 'Add Initial Balances' button). 
2.  'I already have data on what to collect and just need to enter it.' - This option is used when you have balances from a previous system and already know what you're looking to collect for your escrow payments, your cushion amount, and Mortgage Insurance (MIP/PMI). You'll plug in those numbers and add the carryover balance from the previous system via the register's 'Add Initial Balances' button. You then add new projections for your Escrow Fee Types and generate an escrow analysis document, the analysis uses the loan's current numbers (currently set projections, current escrow balance, and cushion).
   
   

1. Explain the Initial Escrow Mode and generate the initial escrow analysis document
   1.  Initial Escrow Analysis Mode - You need to complete the below Initial Escrow Analysis steps (DO NOT record a payment before finishing the initial analysis steps). After you record your first payment the Escrow tab will convert to regular escrow analysis mode. After that, the gray dialogue box will go away. 
   2. The 'Next Escrow Analysis Date' matches the loan's closing date by default, which you'll want to set to a year out. For example, for a loan with a closing date of 1/1/23, you'd want to set this date to 1/1/24. 
   3.  Create Escrow Fee Types (Property tax, Property Insurance, etc. - PMI/MIP can be included in an analysis by adding a projection on that created fee type, however, the 'Mortgage Insurance' field on the summary is separate and included on 1098 forms.)
   4.  Add Escrow Projections for those created Escrow Fee Types (Typically 12 months out from the loan's first due date, aka anniversary date)
      1.  Note: The projection amounts per Escrow Type are estimates you assess and expect to collect, to be paid out on their anniversary date. These end-of-year projection amounts are used for the document's calculations to know what to collect at closing and over the 12 pay periods to ensure enough is collected for a payout. 
   5. Enter an Escrow Cushion before generating the Initial Escrow Analysis Document. The cushion tells the system that you would like X number of pay periods worth of cushion. If we enter 2 here, you are setting two pay periods of Escrow to be collected and available at any time. In the Initial Escrow Analysis mode you collect this amount upfront. The cushion helps if you need to make the payout a pay period early, or if unprecedented amounts are added to projected payouts. 
      1.  Note: Legal requirements vary between states or circumstances, so you'll want to see if your cushion is allowed. 
   6.  Once those three items are added (Fee Types, Projections, and Cushion), you'll generate the initial escrow analysis document to derive two items:
      Note: When generating the document, the 'Document Date' entered will only affect the generated document's statement date. 
      1.  The Initial Escrow Amount/balance (Due at Closing) - to be added via the Register using the 'Add Initial Balances button', which is the amount paid by the borrower at closing as an Escrow balance amount.
      2.  The monthly Escrow Amount - to be entered under the loan's Escrow tab for the 'EscrowPayment' row by clicking the blue '(Edit)' link 
         1. Note: Enter the correct start date (first payment's due date) and the escrow amount to be collected (applied to all future pay periods). You will set a new date and amount for each anniversary (every 12 months) when generating the second Annual 'Escrow Analysis' document, so the amount set here will change and be overwritten once the subsequent analyses are done. 
      3. To finish, you'll manually enter an amount for the PMI/MIP (if you collect this) to be collected per pay period by clicking the blue '(Edit)' link for the 'Mortgage Insurance' row. This is an amount collected outside of the Escrow's calculations and is usually an insurance amount charged by the mortgage's servicer as insurance on their behalf (separate from property insurance tax). 
   7.  Now that we have the Initial Escrow Analysis Document you can send it to the borrower by going to the loan's Documents tab and using the 'Send' button if the document looks accurate.  
2. At this point, you should have collected 12 payments on the loan, so you need to make payouts for your Escrow Fee Types before generating the second Escrow Analysis document.
   Note: This is because the Annual Escrow Analysis Document uses the loan's current Escrow balance amount to derive new monthly Escrow Payment calculations. If the Escrow balance is too high, the document's calculations will show a monthly credit amount owed to borrowers instead of dues. 
   1. Under the Escrow Fee Types section, you'll click the 'Pay' button. 
   2. This prompts you to enter the payment's date (Payout), amount, and check number (optional). Optionally you can add a contact from your existing contacts list to associate these payouts to their respective entities. 
   3. Clicking 'Next' will build out new projections for the fee type you're paying out - (this process sets the new projected date and amount for the Escrow [Fee Type] Projections section of the loan's Escrow tab)
      1. the first item correlates which payout this relates to (the Escrow Fee Type and the associated projected payout date), 
      2. the new Projected Date for this Escrow Fee Type (another 12 months out), and 
      3. the new Projected Amount for the Escrow Fee Type
      4. Note: These new projection details are used for the next Escrow Analysis monthly Escrow Payment amount.
         Example: The Initial Escrow's projections were 1/1/2024 (the loan's closing date was 1/1/23) so these new projections will be for 1/1/25 with new projected amounts for the year. You'll repeat these same steps every 12 months.  
3. The alternative scenario is: You already have data when you started this loan in Bryt with carryover balances
   1. In these cases, you'd add your balances via the register's 'Add Initial Balances' button. 
   2. Since you're starting this loan with carryover balances from a previous system, you'll need to establish Escrow Fee Types, and then add projected payouts (Projections) for those. 
   3. Finally, you'd set a cushion, typically you'd set 2 for the cushion and no more than that. However, it varies based on your scenario as there could be limitations on how much you can collect. 
      1. With those three data items added, you're all set to continue to the next step to generate the Escrow Analysis document. 
4. Generate the Annual Escrow Analysis Document (second template) and make necessary adjustments to the loan's Escrow tab
   1.  After the Escrow Fee Type payouts are made, you'll generate the second 'Escrow Analysis' template and plug in the new calculated Escrow Payment like before. 
   2. You'll want to change the 'Next Escrow Analysis Date' by clicking the blue '(Edit)' link and entering a new date 12 months out (usually just changing the year on the existing 'Next Escrow Analysis Date' date). This date that's set here is mostly to serve as a reminder for yourself, it is not used in any calculations. 

Please email support@brytsoftware.com if you need further assistance. Thanks!