One of the foundational concepts when it comes to administering escrow accounts is the “escrow account computation year”. Section 1024.17(b) defines this as …a 12-month period that a servicer establishes for the escrow account beginning with the borrower's initial payment date. The term includes each 12-month period thereafter, unless a servicer chooses to issue a short year statement under the conditions stated in §1024.17(i)(4). It’s not uncommon for us to find errors related to the escrow account computation year. Sometimes the initial statement reflects 13 months (or more) instead of the maximum of 12 and sometimes institutions start the 12-month period in the wrong month, which Jerod explains in the video:
Published 2026/01/28
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru. Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports-related!
