A shortage means we’ve projected that your escrow account will fall below the minimum required balance in the coming year.

• We’ll automatically spread the shortage amount over the next 12 months and add that to your monthly payment.
  Note: This is one of the most common reasons that your payment may increase.
• You can prevent this additional monthly payment increase by paying the shortage as a lump sum before the new payment effective date, but this lump sum payment is not required and is completely voluntary.
  Note: Your Escrow Review Statement will pinpoint the exact month(s) where the account falls below the minimum required balance.

A surplus means there’s more in your account than we’ll need.

• If you have a surplus of more than $50 and your account is current, we’ll send you a check within 30 days of the escrow analysis.
• If the surplus is less than $50 and your account is current, we’ll spread the surplus over the next 12 months to reduce the monthly payment.
• If the account is delinquent, the surplus will remain in the escrow account for future disbursements.
  Note: Current accounts in Nevada (NV) will be sent a surplus check, even if it is less than $50.

On your Escrow Review Statement, you’ll see a month-by-month projection of your upcoming escrow deposits, the timing and amounts of upcoming disbursements we expect to make on your behalf, and the running balance of the escrow account.

Then, we compare your escrow account’s lowest projected balance in the year ahead to your minimum required balance.

• If the lowest projected balance is less than your minimum required balance, you have a shortage.
• If the lowest projected balance is more than your minimum required balance, you have a surplus.