Escrow analysis (RESPA)

How the RESPA-compliant escrow calculator and annual analysis work.

Updated June 13, 2026

NoteHarbor's escrow calculator is RESPA-only (12 CFR 1024.17).

The numbers

  • Base monthly escrow = annual disbursements ÷ 12.
  • The recommended balance is the RESPA maximum: base × 14/12 (a two-month cushion, capped at 1/6 of annual disbursements).
  • Insurance premiums feed the calculation only when not marked self-pay.
  • Annual tax aggregates across all county tax accounts on the property.

Annual analysis

The Escrow tab → Annual Analysis compares what's on hand to what's required and surfaces:

  • Shortage → collect in full (generates a borrower invoice PDF — it does not post a ledger entry) or roll into next year.
  • Surplus → apply to principal, refund, or keep.
  • A catch-up projection spreads the difference over the remaining days so collections meet the bill by year end.

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Escrow analysis (RESPA) · NoteHarbor Help