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Should an existing escrow shortage be included in calculating a borrower’s monthly mortgage payment?

April 26, 2017borrower calculating escrow existing included mortgage payment shortage

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Should an existing escrow shortage be included in calculating a borrower’s monthly mortgage payment?

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Yes. An existing escrow shortage currently being paid by the borrower should be included in the borrower’s monthly mortgage payment. In addition, as provided in Supplemental Directive 09-01, if the servicer identifies any other escrow shortage as part of the servicer’s escrow analysis, the servicer must take steps to eliminate the shortage in compliance with applicable laws, rules and regulations, including, but not limited to, RESPA and TILA.