Escrow Processing

Shares and Certificates Shares/Certificates Escrow Processing

This document provides a comprehensive guide to the Escrow Processing functionality within the FLEX system, designed to assist credit union users in managing escrow share accounts, generating statements, and performing necessary updates and corrections.

1. Overview of Escrow Processing

Escrow Processing in FLEX enables credit unions to:

  • View account history and escrow activity for member escrow share accounts.
  • Calculate new escrow amounts and payments.
  • Generate and print escrow statements.
  • Update loan records with calculated escrow and loan payment amounts.
  • Correct errors in escrow transactions.

Important Note: Amounts calculated during statement creation do not automatically update the loan until the “Update” option is explicitly selected. FLEX recommends thorough review of statements prior to updating.

2. Accessing Escrow Processing

To access Escrow Processing:

  • Navigate to the FLEX Main Menu.
  • Select Loans.
  • Under Real Estate Loans, expand the Escrow section.
  • Click on Escrow Processing.

3. Escrow Processing Interface

Upon opening Escrow Processing, a list of all escrow share accounts will be displayed.

3.1 Filtering Accounts

Users can filter the displayed accounts to create a working queue. Filters can be applied by:

  • Specific account
  • Open dates
  • Effective dates
  • Types

Note: Once a filter is applied, no worksheets or reports will generate for accounts outside the filtered view.

3.2 Main Actions

The main interface provides the following key actions:

  • Refresh: Updates the displayed list of escrow accounts.
  • Update: Applies calculated escrow and loan payment amounts to loan records.
  • Reverse Update: Reverses previously updated payment amounts.
  • Calculate/Print Statements: Initiates the process of calculating new escrow amounts and generating statements.

3.3 Account Information Displayed

The main table lists various details for each escrow account, including:

  • Name
  • Account Number
  • Suffix (Stx)
  • Balance
  • Loan Number
  • Current Payment (Cur Pmnt)
  • New Escrow Payment (New Esc Pmt)
  • Over/Short amount
  • New Effective Date (New Eff Date)
  • Last Statement Date (Last Stmt Date)
  • Last Update Date
  • Type

4. Correcting Escrow Transactions

Errors made during a transaction can be corrected within Escrow Processing.

4.1 Steps to Correct a Transaction

  1. Select Account: From the main Escrow Processing screen, select the account that requires correction.
  2. Click “Edit”: Click the “Edit” button associated with the selected account. This will open the “Edit Escrow” window.
  3. Navigate to “History” Tab: In the “Edit Escrow” window, click on the History tab.
  4. Select Year (if needed):
    • FLEX defaults to the current year.
    • To view a different year’s history, enter the desired year in the “Year” field and click Search.
    • This displays a history of transactions grouped by escrow codes.
  5. Highlight Escrow Code: Highlight the specific escrow code containing the transaction to be corrected.
  6. Click “Detail”: Click the “Detail” button. All transactions associated with the selected code will be displayed.
  7. Highlight Transaction: Highlight the specific transaction that needs correction.
  8. Click “Edit”: Click the “Edit” button. This will open the “Edit Transaction” window.
  9. Make Changes: Make the necessary corrections to the transaction details.
  10. Click “Save”: Click “Save” to apply the changes.

5. Calculating and Printing Escrow Statements

Generating escrow statements involves calculating new escrow amounts and payments, and then printing the required information.

5.1 Process for Statement Generation

  1. Access “Calculate/Print Statements”: From the main Escrow Processing screen, click the Calculate/Print Statements button.
  2. Set Effective Date: Enter the Effective Date Of Payment Change.
  3. Select Option: Choose one of the following options:
    • Calculate Only:
      • Calculates new escrow amounts and payments.
      • Updates the “New Escrow Payment,” “Over/Short,” and “New Effective Date” fields on the main screen.
      • Does not update the loan records.
      • Recommended for verifying all information and payments before printing or updating.
      • Can be run multiple times until amounts are correct. FLEX saves the most recent calculation.
    • Calculate And Print Statement:
      • Calculates new escrow amounts and payments.
      • Generates and prints the escrow statements.
      • Does not update the loan records.
      • Requires contacting the Forms Department to add the form for first-time printing (additional cost may apply).
  4. Confirm Calculation/Printing: A warning message will display indicating the number of records that will be included. Click Yes to continue or No to cancel.

Recommendation: FLEX strongly advises using the “Calculate Only” option first to review and adjust amounts as needed before proceeding with “Calculate And Print Statement.”

6. Updating Loan Records

The “Update” option is used to apply the calculated escrow and loan payment amounts to the actual loan records.

6.1 Steps to Update Loans

  1. Verify Information: Ensure that all information and payments have been thoroughly verified using the “Calculate/Print Statements” option (specifically “Calculate Only”).
  2. Filter Accounts (if needed): Use the filter options to update payments for specific accounts or update all at once.
  3. Click “Update”: From the main Escrow Processing screen, click the Update button.
  4. Confirm Update: A warning message will display indicating the number of records that will be updated. Click Yes to continue or No to cancel.

7. Reversing Payment Updates

The “Reverse Update” option allows users to revert payment updates in cases of error or other issues.

7.1 Conditions for Reverse Update

  • The reversal program can only be used within 5 days from the original update.
  • The loan record must not have received a payment or been changed in any way since the update.

7.2 Steps to Reverse Update

  1. Filter Accounts (if needed): Use the filter options to reverse updates for specific accounts or all at once.
  2. Click “Reverse Update”: From the main Escrow Processing screen, click the Reverse Update button.
  3. Confirm Reversal: A warning message will display indicating the number of records that will be reversed. Click Yes to continue or No to cancel.

Important: If the 5-day limit is exceeded or changes have been made to the loan record, contact FLEX Support for assistance.