Note: Not all loans require impound accounts. If this loan does not have
impounded funds for future disbursements, do not fill out this section.
You may input up to six impound accounts. To add an impound account, click the down arrow, or to edit
an existing account, click its description. A new window appears, as in the example below.
Impound Type
Select an impound type from the menu.
Description
Input a description to identify this impound account.
Provider
Input the name of the company providing the impound account.
Policy #
Input the policy number associated with this impound account.
Coverage
Input the dollar amount covered by the premium paid in advance.
Expiration Date
Input the date (in an MM/DD/YYYY format) when the account is set to expire.
Paid in Advance
HUD No.
Select the appropriate HUD line number 903 through 910.
Yearly Premium
Input the yearly premium paid in advance for the account.
Months Due
Input the months due to collect for the premium paid in advance.
Paid At
Indicate when the premium is due. Your options are:
Paid By
Indicate who has paid the impounds in advance. Your options are:
- Borrower
- Broker
- Lender
- Seller
Deposited with Lender
HUD No.
Select the appropriate HUD line number 1001 through 1010.
Policy Premium
Input the total policy premium amount.
Policy Term
Input the number of months of policy term (12 or 24) that applies to the policy premium amount.
Disbursement Type
Indicate the frequency of disbursements. Depending upon the type of impound account, your options may include:
- Annual (once per year)
- Bi-Annual (every 6 months)
- Tri-Annual (every 4 months)
- Quarterly (every 3 months)
Disbursements
Click on the boxes representing the month(s) when your disbursement(s) will be paid. The appropriate dollar amount will
auto-fill in the boxes below the dates. You may only enter disbursements that occur within 12 months from the first
payment date, shown at the top of the input page.
If your second (or subsequent) disbursement date(s) is more than 12 months from the first payment date, then you
must input only those months that are within 12 months of the first payment date, and change the amount of that
disbursement.
Example: Your total impound amount is $1,000 and you have just one bi-annual disbursement within the 12-month
period, with the second disbursement falling outside of the 12-month period. When you select the first disbursement month,
the system will automatically calculate that disbursement as $1,000. You must then manually change the first disbursement
amount from $1,000 to $500. When you click the OK button to close this window, you will see a message telling you
that the disbursements do not match the annual premium. Simply click the OK button for that message to continue.
Paid By
Indicate who is paying the impounds. Your options are:
- Borrower
- Broker
- Lender
- Seller
Impound Months
Input the number of months to be impounded.
Special Instructions for loans with MI Surcharge
On the Impounds Screen:
Once the data on the Mortgage Insurance screen is filled out,
you will be able to navigate to the Impounds screen, scroll down and use the 6th impound line that should
already have the Impound Type set as MI Surcharge with a Description of Surchg/Premium Tax as automatically
filled in by the system.
Go to the Deposited with Lender section and select a HUD No.
In the Policy Premium field, enter the annual amount of the surcharge tax (typically this number never exceeds $20.00).
In the Policy Term field, remove the number 12 and leave it blank, then click on OK.
A pop up window appears with the message "Total disbursements do not equal the premium amount." Click on OK to return to the Impounds screen.
The state surcharge is now displayed as an impound.
On the Fees Screen:
Select a non-APR wild card fee line and label the fee, e.g., FL, KY or WV Surcharge Fee. In the Paid By Borrower column, enter the monthly surcharge amount (typically this is a small number; e.g., $1.00).
The system can now calculate the correct data that needs to populate on the appropriate forms.
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