Escrow analysis and shortage
How do we run the annual escrow analysis, deliver the statement on time, and capture the borrower's shortage repayment choice into servicing?
Run the analysis by rule and make the choice a secure screen. Callvu prefills each loan's escrow history, the projected disbursements (taxes, hazard and flood insurance, mortgage insurance) and the cushion the rule allows, computes the new payment and any shortage or surplus under the Regulation X aggregate method, generates the annual statement inside the rule's timing, offers the borrower the shortage options the policy allows on their phone (spread over 12 months or more, or pay in full), captures the choice, routes exceptions to the escrow analyst in the Decision Desk, and writes the new payment and the choice to servicing.
In scopeComplex: multi-party handoffsCallvu moves: prefill, decide, write back
Last updated November 7, 2026.
The problem today
The statement went out with a shortage spread over 12 months, the borrower called wanting to pay it, and the payment change had already posted.
Once a year the servicer analyzes each escrow account, projects the next year's disbursements, and tells the borrower the new payment. When taxes rose the account has a shortage; the statement spreads it by default; the borrower calls to pay it in full, and the agent cannot change the payment that has already been booked. A surplus refund is late because it ran through a different queue.
Regulation X sets the aggregate analysis method, the cushion limit (one sixth of the annual disbursements), the shortage and surplus rules (a surplus of fifty dollars or more refunded within 30 days; a shortage repaid in equal monthly payments over at least 12 months at the borrower's option, or collected in one payment where the shortage is less than one month's deposit), and the timing of the annual statement (within 30 days of the end of the computation year) and the short-year statement.
The analysis is a computation; the choice is the borrower's; the record is one.
How it runs
From the requestto the system of record.
The loan's escrow computation year ends, or a short-year analysis is triggered (a servicing transfer, a payoff, a disbursement change). Callvu opens the analysis for the loan.
- Borrower
- Receives the statement, chooses how to repay a shortage on a secure screen, and receives a surplus refund.
- Escrow analyst
- Decides exceptions in the Decision Desk.
- Servicing
- Books the new payment and the choice from the record.
- Callvu
- Prefills, computes, generates the statement, captures the choice, routes exceptions and writes.
Prefill and project
The escrow history, the last year's disbursements, the current tax and insurance amounts (from the tax bill and insurance processes), the known changes (a reassessment, a new policy premium, mortgage insurance cancellation), and the loan's cushion rule are prefilled from servicing; the next year's disbursements are projected on the rule's basis.
Compute
The aggregate analysis computes the monthly deposit, the target balance, the lowest projected balance against the cushion, and the shortage, deficiency or surplus; the new payment is computed with the repayment of a shortage over the rule's minimum period, and a surplus of fifty dollars or more is scheduled for refund.
Deliver and capture the choice
The annual escrow account statement is generated inside the rule's timing with the required contents; where there is a shortage above one month's deposit, the borrower is offered the repayment options the policy allows on a secure screen (spread over 12 months or longer, or pay in full by a date), and the choice is captured; an analysis flagged by a tolerance (a projection far from history, a negative balance) goes to the escrow analyst in the Decision Desk.
Write back
The new payment, its effective date (with the payment change process), the shortage choice, and the surplus refund are written to the servicing system, and the borrower's statement, the choice and the computation are retained on the loan.
Where it ends: Each loan's analysis ran on the rule's method and timing, the statement reached the borrower, the shortage choice was theirs and is on the loan, and servicing holds the new payment. The Decision Trace shows the computation and any exception decision; the Audit Trace shows the statement delivery, the choice and the writes.
Runtime enforcement
What is enforcedwhile the work runs.
The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.
The handoff
Between the front doorand the back office.
The front door
The borrower meets the analysis in the statement and the shortage choice screen, in any channel.
The back office
The escrow analyst sees only tolerance exceptions; servicing books from the record.
The Decision Desk
- An analysis outside tolerance (a projection far from history, a negative balance, a disputed disbursement) goes to the escrow analyst in the Decision Desk with the computation and only the allowed outcomes.
Proof
In scope.Proof at scale, not one process at a time.
The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.
Questions
What buyers ask next,answered plainly.
How is the shortage repaid?
In equal monthly payments over at least 12 months by default, or in full at the borrower's choice; a shortage below one month's deposit may be collected in one payment. The choice is captured on a secure screen and written to servicing.
When is a surplus refunded?
A surplus of fifty dollars or more within 30 days of the analysis; a smaller one may be credited to the account.
What triggers a short-year analysis?
A servicing transfer or a payoff, with the statement due within 60 days; the process opens it from the event.
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