Escrow analysis review that checks every analysis against the real bill and policy, before the shortage notice goes out
Wrong shortages caught before the notice goes out, explained in plain words.
See one case, screen by screen ↓Checking each annual escrow analysis before it mails: that every projected tax and insurance figure matches the bill, the policy and what was paid, that the account was computed correctly, and that the statement follows the escrow rules. Escrow Analysis Review does this for every analysis in a cycle, not a sample.
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The servicing system does the arithmetic right. It projects from whatever figures it holds, and those figures are often wrong: a renewal offer the borrower never took, last year’s tax bill, the gross tax when you always pay early for the discount, a flood premium that has since renewed higher. The analysis then mails with a payment change that is wrong.
With a few days between the cycle running and the print file closing, an escrow team can open a sample of statements by hand, not thousands. The rest mail as generated. When the shortage notice lands, the phones ring and disputes follow. Among the Federal Reserve’s most-cited violations of 2023, every Reg X finding was an escrow rule.
Estimated split of the escrow team’s days for one monthly cycle, by hand and with the solution.
Six specialist agents check every tax and insurance figure against its document; the escrow analyst approves.
Wrenfield Home Loan Servicing’s December cycle: 4,812 annual escrow analyses, new payments from 1 December, print file closing Wednesday at 17:00. Here is the Monday, screen by screen, in the working solution.
Renee opens the solution to the December cycle: 4,812 analyses checked over the weekend against their bills and policies, 4,431 matching, 157 corrections already approved, 224 open — and the print file closing in 2 days 8 hours. The first account on screen is drawn as its year of balances, with the cushion line and the low point ringed.
“No shortage · $32.69 surplus stays in the account. 1 document disagrees with it.”
Adaeze Okonkwo’s analysis in Katy, Texas carried the 2025 Fort Bend County bill, $8,367.80. The agents found the 2026 statement, certified 2 Oct: $9,012.48. Renee drops it on the curve, the year reruns, and the January low point falls to $1,592.08 against a cushion of $2,204.08.
“Shortage $612.00 — the analysis used last year’s bill.” New payment $2,837.24 (+$123.19), not $2,732.52 (+$18.47).
Teresa and Daniel Marsh, Bradenton, Florida. The system projected Seagrape Casualty’s $7,940.00 renewal offer; the Marshes moved to Tarpon Key Mutual at $6,215.00, paid from escrow 11 Aug. It projected the gross Manatee County tax, $7,388.00, though Wrenfield pays in November for 4% off: $7,092.48. And it carried the 2025 flood premium, $1,148.00, after a renewal at $1,354.60.
“The system said: shortage $2,534.32 · the notice would have asked for $597.84 too much.”
Analyses lists the 381 exceptions by kind — insurance not the current policy 142, tax from last year’s bill 88, tax not as it will be paid 61, flood 37 — with what the system says, what the check says, and the difference a month. 263 would have overstated the payment; 118 understated it and would bring a shortage next year.
Renee opens the case and starts the check. The analysis reader reads the system’s analysis and 11 deposits; the tax bill checker reads the proposed-tax notice; the insurance checker reads four policy documents; the escrow recomputer reruns the account; the rule checker tests nine Reg X rules; the explanation writer drafts the letter. Each difference comes with its documents.
“Finished in 47 s · 6 agents · 9 documents.”
Bills and policies puts what the system projects next to what is bound and paid: homeowners −$1,725.00, county tax −$295.52, flood +$206.60. The escrow history for the computation year sits underneath, with the flood renewal paid 9 Feb and the Tarpon Key premium paid 11 Aug.
The insurance checker never accepts a renewal offer as a renewal without a bound policy or a payment.
By the aggregate method: the account starts 1 December with $507.20, must not fall below a cushion of $2,443.68 — one-sixth of the year — and reaches its low point in November 2027, after the county tax is paid. The shortage is $1,936.48, not $2,534.32, spread over 12 months at $161.37.
312 words at reading grade 6.4, in English and Spanish. Their payment goes from $2,925.69 to $3,225.38 on 1 December. The letter shows each bill last year and this year — county tax +$450.24, home insurance +$1,003.00, flood +$206.60 — and both options: spread the shortage at $161.37 a month, or pay it now. Customer care gets the same numbers in a prepared answer.
Renee approves the correction and the letter: three differences, each with its document, and 8 of 11 checks passed — the other three are these differences. Under $250 a month, no second analyst is needed. The corrected analysis goes to the servicing system, and the statement and letter join Friday’s print file.
“Approved by Renee Okafor · corrected analysis sent to the servicing system · statement and letter in Friday’s print file.”
Nine rules tested on every analysis — aggregate method, cushion within one-sixth, a 12-month computation year, tax and insurance as billed or paid, surplus refunds, shortage spreads, statements held in bankruptcy or 30+ days late. Colleen releases the print file once every exception is approved, held or sent back.
The same cycle, seen by the people who check it, release it, test it and answer for it on the phone.
Six specialist agents check every tax and insurance figure against its document; the escrow analyst approves.
Reads the servicing system’s annual analysis and statement, and the escrow history for the computation year: every projected disbursement, deposit, cushion and shortage, and every payment with its payee and date.
Reads tax bills, proposed-tax and assessment notices; checks the parcel, the owner and the tax year, and applies your payment rule for the state — discount month, installments — to work out what will leave the account.
Reads homeowners, wind and flood declarations and renewals; matches every insurance item to a bound policy naming the servicer as mortgagee, with its term, premium and payment from escrow.
Reruns the account by the aggregate method with the checked figures: deposit, cushion, low point, shortage, surplus, deficiency and spread.
Tests Reg X §1024.17 and the investor’s rules on every analysis — timing, surplus refunds, spreads, delinquency and bankruptcy — and writes the exam log.
Writes the borrower letter in plain words at reading grade 7 or lower, in the borrower’s language on file, with the options and the payment for each — and a short prepared answer for customer care with the same numbers.
Approves each correction; manager releases the cycle. The agents propose; a named person decides.
The escrow team can ask in plain words about a borrower, a document or the whole cycle. Answers come with the documents behind them.
Why does the system overstate the Marshes’ payment?
Three figures in the system’s analysis do not match the documents: home insurance $7,940.00 against $6,215.00, county tax $7,388.00 against $7,092.48, and flood $1,148.00 against $1,354.60. The $7,940.00 is Seagrape Casualty’s renewal offer, which the Marshes declined. Recomputed, the payment is $3,225.38, not $3,426.36 — $200.98 a month less.
Find other loans with Seagrape’s offer loaded as a renewal
23 more in the December cycle, 24 with the Marshes. Seagrape’s renewal feed on 3 Aug loaded offers as renewals; each of these borrowers moved to another carrier and the new premium was paid from escrow. Together they overstate payments by $3,912 a month. I have grouped them for you; each still needs your approval.
Explain the shortage to Teresa Marsh in plain words
Your payment goes from $2,925.69 to $3,225.38 on 1 December. Your county tax went up $450.24 (we pay it in November so you get 4% off), your home insurance with Tarpon Key Mutual is $1,003.00 more than your old policy, and flood insurance rose $206.60. Your account is $1,936.48 short of its reserve: spread it at $161.37 a month, or pay it now.
Which exception types put the most money at stake?
Insurance not the current policy is the largest: $24,180 a month across 142 loans, 24 of them from one Seagrape feed. Then tax from last year’s bill, $9,310 across 88 loans; tax not as it will be paid, $7,420 across 61; and flood, $1,960 across 37. Surplus refunds owed come to $6,870 in one-off payments to 19 borrowers.
13 screens from the working solution, on its sample data. Pick one to see it large.
The rules every analysis is checked against. Changes are versioned, dated and on the exam log.
| Setting | Default | Choose from |
|---|---|---|
| Florida property tax | November, 4% discount | November, 4% discount · December, 3% discount · By 31 March, no discount |
| Which tax bill to project from | Latest bill or proposed-tax notice | Latest bill or proposed-tax notice · Last paid bill · Last paid bill + CPI |
| Which premium to project | Paid → bound policy → renewal bill → last year + CPI | Paid → bound policy → renewal bill → last year + CPI · Bound policy → paid → last year + CPI |
| Cushion | Two months, capped at one-sixth | Two months, capped at one-sixth · One month · No cushion |
| Shortage under one month | Borrower’s choice | Borrower’s choice · Spread over 12 months · Leave in the account |
| Print file closes | 2 business days before mailing | 1 · 2 · 3 business days |
| Corrected analysis approved by | Analyst · second above $250 a month | Analyst · second above $250 a month · Analyst only · Analyst · second above $100 a month |
| Letter languages | English and Spanish | English only · English and Spanish · English, Spanish and Vietnamese |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample servicing data · “estimated” = our estimate · “typical” = published figures (BOK Financial, Dec 2025 — 85% of escrowed customers with a shortage on their 2025 analysis; Consumer Compliance Outlook, Q3 2024 — every Reg X violation among the Federal Reserve’s most-cited of 2023 was an escrow requirement). Rules cited: Reg X 12 CFR §1024.17; Fla. Stat. §197.162. People, companies, carriers and loans named on this page are fictional — characters and sample data in the working solution.
Checking each annual escrow analysis before it mails: that every projected tax and insurance figure matches the bill, the policy and what was paid, that the account was computed correctly, and that the statement follows the escrow rules. Escrow Analysis Review does this for every analysis in a cycle, not a sample.
Your servicing system runs the analysis from the figures it holds. This solution checks those figures against the county tax bill, the declarations pages and the escrow history, reruns the account with the checked figures, and writes the explanation. The analysis still comes from your system; the corrected one goes back to it after approval.
Nine rules under §1024.17 and the investor’s rules: aggregate accounting, a cushion of no more than one-sixth, a 12-month computation year, tax and insurance as billed or paid (or last year plus CPI), surplus refunds of $50 or more, shortage spreads, no regular statement in bankruptcy or 30+ days late, prior-year totals, and disbursements before the penalty date.
Yes, by your rule for each state. In Florida it can project the full year paid in November for the 4% discount; in installment states it projects each installment in the month it is paid. Without a bill for the coming year, it uses last year’s amount adjusted by no more than CPI.
The explanation writer drafts a letter from the approved figures only, at reading grade 7 or lower and in the borrower’s language on file: what changed, each bill last year and this year, and the options with the payment for each. Customer care gets the same numbers to answer the call.
Yes. The agents recommend; an escrow analyst approves every corrected analysis and letter, a second analyst above $250 a month, and the escrow manager releases the cycle to print only when every exception is decided. The agents never change the servicing system’s figures and never send.
Yes. Tax payment rules by state, which bill and which premium to project from, the cushion, shortage spreads, the surplus refund threshold, the print cut-off, approvals and letter languages are all settings, versioned and dated on the exam log.
The Agentic Solution Engine builds and deploys it from your requirements — your servicing system’s analysis export, your escrow rules and a sample of past cycles — and it goes live once every quality gate has passed. We will walk you through it on your own analyses first.
Missing-item letters out the same day, decisions inside 30 days.
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1-min demoWe’ll run Escrow Analysis Review on a sample of your own annual analyses.