1. Loan Origination Setup Guide
  2. Product
  3. Escrow
  4. Escrow
  5. Shortage/Cushion Rules

4.23.1.2 Shortage/Cushion Rules

In Shortage/Cushion Rules, you can review and set up escrow analysis shortage/cushion rules. Shortage/cushion rules determine how much cushion you are allowed on a particular escrow line and if there is a predicted shortage, how to eliminate it by increasing payment.

To setup Shortage/Cushion Rules
  1. Click Setup > Setup > Products > Escrow > Shortage/Cushion Rules.
  2. In the Rules section, perform any of the Basic Operations mentioned in Navigation chapter.

    Figure 4-26 Shortage/Cushion Rules


    Description of Figure 4-26 follows
    Description of "Figure 4-26 Shortage/Cushion Rules"

    A brief description of the fields is given below:

    Table 4-65 Rules

    Field Do this
    Rule Specify the rule code. This is protected against update and cannot be changed after initial set up.
    Description Specify the rule description.
    Start Dt Specify the start date for this rule. You can even select the date from the adjoining Calendar icon.
    End Dt Specify end date for this rule. You can even select the date from the adjoining Calendar icon.
    Enabled Check this box to enable the rule.
    Parameters section
    Shortage Threshold Select the shortage threshold, either an amount or number of installments, from the drop-down list.
    Shortage Value Specify shortage threshold value.
    Shortage Spread Increase% Specify shortage spread increase percent.
    Term Specify shortage spread term.
    Max Term Specify the maximum amount of shortage spread terms.
    Surplus Amt Specify surplus threshold amount for this rule.
    Company Select the company for this rule from the drop-down list.
    Branch Select the branch for this rule from the drop-down list.
    Product Select the product for this rule from the drop-down list.
    State

    Select state for this rule (required).

    IMPORTANT: When you select which escrow rule to use, the system searches for a best match using the following attributes:

    1. Company

    2. Branch

    3. Product

    4. State

    Hence, the system recommends creating one version of each rule, where ALL is the value in these fields.
  3. Perform any of the Basic Actions mentioned in Navigation chapter.
  4. In the Rule Details section, perform any of the Basic Operations mentioned in Navigation chapter.
    A brief description of the fields is given below:

    Table 4-66 Rule Details

    Field Do this
    Escrow Type Select escrow type from the drop-down list.
    Cushion Type Select cushion type from the drop-down list.
    Cushion Value Specify cushion value.
  5. Perform any of the Basic Actions mentioned in Navigation chapter.

    Note:

    While considering the cushion rules, preference is provided either for all records and then for Insurances or taxes maintained in a particular shortage or cushion rule.

Parent topic: Escrow