Annual Escrow Analysis
Please be advised that CCU has mailed an annual escrow analysis to members who have escrow accounts set up on their mortgage loan where enough money is available to pay the property taxes and, if applicable, the homeowner insurance premiums. This analysis provides detailed information regarding escrow accounts and payments for the next year.
We've compiled a list of answers to commonly asked questions. Please contact the Mortgage Servicing Department at 877.275.2228 with any additional questions or concerns.
What is a reserve?
A reserve is intended to cover an increase in your tax bill in order to avoid any shortages. CCU follows RESPA (Real Estate Settlement Procedure Act) guidelines which state we can hold a maximum of 2 months of reserve or cushion in an escrow account for 12 months.
What happens when there is a shortage or overage?
When there is an overage of over $50.00 on the account, a check for the overage amount will be mailed. The check will be made payable to all borrowers on the mortgage for the entire amount of the overage. If the overage is under $50.00, the amount will be spread out over twelve months, decreasing your payment an equal amount each month during that time. If there is a shortage, the payments will increase for an entire year to accommodate the shortage.
What is the purpose of the escrow analysis?
An escrow analysis is performed yearly to determine whether a shortage of funds or overabundance of funds exists in your escrow account. This is an audit of your escrow account to ensure that enough funds are available to pay the appropriate tax and insurance expenses for the coming year.
I have a question on my tax bill amount. Who can I contact?
If you have questions on your assessed valuation, your first point of contact is your township assessor office.
My payment changed. Do I have to change my ACH (automatic transfer setup) or is it automatically changed?
Yes, you need to update your allocation. CCU cannot change the amount without your consent.