ESCROW MODULE:

The NLS Escrow Module is an add-on to the basic NLS package that fully automates the tasks associated with maintaining escrow accounts on behalf of borrowers. It allows organizations to receive payments from their clients for property taxes, insurance and special assessments. The organization can automatically disburse these sums to the appropriate vendors, as they become due. It allows servicers to specify unlimited types of escrow accounts as well as vendors.

In meeting the accounting and reporting requirements set forth by the Real Estate Settlement Act (RESPA), NLS Escrow performs all of the traditional functions escrow officers typically encounter including the billing, collection, organization, and analysis of all of the data relating to escrow transactions; the generation of documents involved in each transaction; the logging of the receipt of funds and the generation of disbursements; the generation of reports about the work completed through the system; and the generation of necessary tax forms.

NLS Escrow incorporates the complete accounting audit trail from receipt to eventual disbursement, through the check module. Furthermore, it possesses a complete vendor/voucher/check processing solution that acts as an AP system within NLS.

Key Features:

• Escrow Disclosure Statement - The statements can be generated at any time for an individual or selected group of borrowers. The three-part statement fully complies with RESPA requirements and includes a history of the account, a projection of the account's activity for the coming year, and analysis of historical and projected impounds, payouts, deficiencies and surpluses.
   
• Vouchers - NLS Escrow provides an easy-to-use voucher system to manage and schedule disbursements to be made from the escrow account. The process of disbursing funds can be further automated by having the funds electronically transferred from the escrow account and directly deposited into the vendor's account.
   
• Timely Disbursement - RESPA regulations require servicers to pay all disbursements in a timely manner, that is, by the due date or an earlier date to take advantage of discounts, if available. To conform to this regulation and to ensure that disbursements are made in a timely manner, the NLS Escrow Module generates the Unpaid Vouchers Report. This report can be printed, or viewed on-screen, at any time.
   
• Check Printing & Electronic Transfer of Funds - The process of calculating and disbursing funds from the escrow account is fully automated by the NLS Escrow Module. Furthermore, checks or electronic transfers of funds can be done at any time. Individual vouchers can be selected for payment or placed on hold. The system can be set to reject or suspend partial payments, and interfaces seamlessly with AP systems.
  
  To minimize use of supplies, checks can be grouped by payee. Each item is uniquely identified on the stub by the payee's own reference number, loan account, borrower's name, description and amount.
  
  Check printing can be accomplished to meet a variety of unique needs, including style of check, logo placement on the check and check-signing and cutting authorities. Checks can be printed on pre-printed or blank-check stock paper.
   
• Accounting model - Complete accounting audit, from the receipt of escrowed funds to the eventual disbursement, via the check module.
   
• FARETS Interface - Our interface to First American Real Estate Tax Service (FARETS) permits users (that subscribe to FARETS) to automatically update all tax information electronically with the appropriate taxing authority. Simply indicate which properties you have in your portfolio and FARETS will send out an update file each year with any modification information at the taxing jurisdiction level. When processing the FARETS file, NLS will automatically verify each tax item ensuring that the correct amount is being remitted back to the taxing jurisdiction.

Process:

a. Add a vendor account to the system for the to-be impounded invoice amount;

b. Add an impound to an individual loan that will bill periodically on the statement for impound    
   amount;

c. At a point in time in the future, the system will automatically create a voucher for payment to
   the vendor account for the invoice;

d. A check will be cut for delivery to the vendor;

c. A reconciliation of the impound accounts with a statement going to the customer.

 

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