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Understanding your annual escrow analysis statement.

Prior Payment and New Payment BreakdownYour loan payment including escrow for the prior year and your new loan payment including escrow for the coming year.

Projections for the Coming Year The expected activity for your escrow account for the coming year.

Determining your Escrow AmountA list of all payments that are scheduled to be made on your behalf. Please call us immediately at the phone number found on your escrow analysis statement if items are missing or listed incorrectly in this section. Note: If a bill is not listed in this section, it may not be paid.

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©2010 KeyCorp. KeyBank is Member FDIC. Key.com is a federally registered service mark of KeyCorp. CS10540

Understanding your annual escrow analysis statement.

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Current Escrow Balance Your escrow balance as of the date of this statement.

Actual Escrow Account History StatementThis section reflects the exact payments made into your escrow account and the exact amount disbursed from your escrow account since your last analysis.

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Anticipated Payments and DisbursementsThe projected activity in your escrow account for the coming year based on the previous year.

Projections for the Prior YearThe activity for your escrow account for the prior year.

Anticipated Escrow BalanceYour escrow balance at the time of the analysis, plus all payments up to the effective date of the analysis, less all planned disbursements up to the effective date of the analysis.

escrow accounts

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Commonly asked questions.

Q: What is an escrow account?A: An escrow account is an account that a loan servicer establishes and controls on behalf of the borrower to pay

obligations such as property taxes and insurance premiums on time. These obligations can include: • Real Estate taxes • Property (homeowner’s) insurance • Flood Insurance

Q: What is an escrow analysis?A: An escrow analysis itemizes all payments from and contributions to your escrow account on an annual basis. Key

does this to make sure the amount of your monthly payment is adequate enough to pay all escrow obligations on time. This analysis also determines whether any overages or shortages exist in your escrow account after all scheduled payments and disbursements.

Q: How is the lowest projected balance point determined?A: The lowest monthly escrow balance during the year projection is the low-point. Key projects your escrow balance for

a twelve month period with the assumption that we receive regular payments and make scheduled disbursements.

Q: Why do you collect a cushion?A: Based on federal law, lenders may require a cushion of up to 1/6th or 2 months of the total annual escrow

disbursement amount. The cushion funds cover unexpected or increased disbursements or disbursements made before the funds are available in the borrower’s escrow account.

Q: What is an Escrow Account Projection?A: An escrow account projection lists all of the escrow deposits we expect to receive in a 12-month period,

as well as all of the disbursements we expect to pay from the account during the same period.

Q: Why did my monthly escrow payment amount increase?A: Your monthly escrow payment may increase because there are not adequate funds in your escrow account to pay

your insurance premiums and/or property taxes. This is called a shortage. A shortage may also occur if there is an increase in your future insurance premiums and/or real estate taxes.

Q: If I want to pay my entire shortage in full, where do I mail it?A: Please send a check* clearly labeled as a shortage payment along to:

KeyBankAttention: Escrow Department4910 Tiedeman Rd.Brooklyn, OH 44144*be sure to include your account number and address

Q: If I pay my shortage in full, will my payment amount remain the same?A: Not necessarily. Paying your shortage in full will minimize your payment increase. However, your payment

amount may still change if your insurance or tax payments increased in the last year. If you pay your shortage in full, Key will recalculate your payment accordingly and your monthly escrow obligation will remain 1/12 of the anticipated disbursements.

Is your monthly mortgage payment increasing? Please read this important information:An increase to your monthly mortgage payment after an escrow analysis is typically due to increases in your homeowner’s insurance and/or property taxes.

Please contact your insurance agent or local taxing authority with questions regarding a change to your premiums or property taxes.