We just closed a loan and collected too little for homeowners insurance. Apparently the loan officer looked at the wrong number. Should we let this ride until the first analysis and they will havea deficiency and their payment will go up or should we try to fix it now? If we try to fix it now, do we just issue a new initial escrow statement and have them pay the difference for the initial deposit? But this will cause their payment amount to change and then their final TIL will be wrong…
You have options:
1) You may “let it ride” and deal with the shortage/deficiency at the end of the escrow year; or
2) You may close the existing escrow year early, generate an annual escrow statement that reflects the shortage, and start a new escrow year with the correct payment amount.