Moneylender 3 Professional - Loan Servicing Software

User's Guide and

Escrow Charge

Screenshot of the edit Escrow Charge window.

Escrow charges are the amounts to add to the principal and interest payment already set on the loan. This additional amount is due and payable by the borrower with each scheduled payment.

Amount - Enter the amount to be added to each due date to be collected and put in the Escrow account.

Start Date - The date when the charge takes effect. The set amount will be added to all payments on or after this date. Any Charges with start dates prior to this charge will be superseded and retired by this charge.

End Date - The date when the charge expires. The amount will be applied to payments on this date, but not after.

Moneylender will detect if a borrower has sent a payment before the due date, and will take up to one payment worth of escrow from such payments in most situations. If payments are erratic, late, or delinquent Moneylender will expect the escrow to be paid on or after each due date, and the amount funded to the escrow account will always total up to the amount scheduled eventually.

Charges do not stack, all existing charge settings are ignored when a new charge setting takes effect. It is not required to turn back the ending date on a previous escrow charge setting before having a new setting take effect. If the new setting is for a short period of time, the old setting will not take effect when the new setting expires.

Escrow charges have the effect of adding to the Escrow Due account's balance on or before each scheduled payment on a loan within the charge's start and end dates. If the loan is already paid current when a Regular or Interest payment is recorded, the escrow system will treat that as an early payment for the upcoming due date and preemptively add the charge amount to the Escrow Due balance before the payment is applied to the loan. When Regular or Interest payments are applied, their funds are first distributed to cover the balance of the Escrow Due account, and that amount is deposited into the Escrow account.

If a payment is recorded as an Escrow Payment, the entire payment is applied to the escrow account, but it does not affect the Escrow Due on the loan. If a loan has current escrow due of ¤100, and an escrow payment of ¤1000 is received, there will still be ¤100 in escrow due. Escrow payments are treated as deposits directly to the escrow account, and not as regularly scheduled payments.