If you received your Annual Escrow Account Disclosure Statement recently, you may have noticed it looks different. We redesigned the statement to be easier to read and understand.
A better explanation of your escrow account and how it works
An escrow statement is an annual analysis of your account. We deliver it to you once a year, on a schedule unique to your loan.
What are escrow accounts for?
Escrow accounts are common and most ditech customers have one. Payments collected in escrow accounts pay property bills—like city or county taxes—when they’re due. It’s a simple idea that can seem complicated when taxes go up or down or insurance premiums change.
The more you know about your escrow account, the better. Understanding escrow may help you plan your budget, read your escrow analysis statement, and even prepare to pay off your loan.
How to read your new statement
Your new escrow statement is broken up into five sections across two pages.
- This section highlights key information regarding your recent escrow review. We let you know whether your escrow account has a surplus or a shortage. We also let you know what your new monthly mortgage payment will be and what date your new payment takes effect.
- This section describes the changes to your monthly mortgage payment, due to changes in your escrow payment. This section shows both your current payment amount and your new payment amount
- This section explains what actions you need to take, if any, based on the information provided. Specific actions are included to pay your shortage. The escrow shortage coupon should be included with your shortage check or money order.
- This section shows you how we calculated your escrow shortage or surplus. Your expected payments in and out of your account are projected over the next 12 months. We then compare the lowest projected balance to the minimum balance that must be maintained in your account.
- This section shows you how much money you paid into your escrow account and how much we actually paid out since your last escrow review. We also include what we expected you to pay to escrow and what we expected to pay out.
Click here for a more in-depth explanation on how to read your new escrow statement from ditech.