Q: What is an escrow account analysis?
A: (UPDATED 6/2/2021): An escrow account analysis is the accounting a servicer conducts in the form of a trial running balance for an escrow account to:
Determine the appropriate target balances;
Compute the borrower’s monthly payments for the next escrow account computation year and any deposits needed to establish or maintain the account; and
Determine whether a shortage, surplus, or deficiency exists.
12 CFR § 1024.17(b).