Impound Codes

Note

Impound feature is an optional module to NLS. Please contact your Nortridge representative for information on purchasing this module.

To configure impound codes, select the Impounds sub-category under Loan Setup.

Click Add to add an impound code. In the Add New Impound window, enter a name for the code and select a transaction code for the Assessment and Distribution to be used with this impound. Click OK when finished.

The Discretionary Payment and Enforce CoreLogic compatibility Enforce FARETS compatibility options are not yet implemented.

Enable Default Value for Cushion Type5.19+
When selected, the Cushion Type and the respective value in the Impounds dialog will be automatically populated as configured for the selected Impound Code. Specify the Cushion Type and the respective Number of Periods or Cushion Percentage in the provided field.

Analysis Setup Tab

Analysis Setup

Select Store statement to Comments & Documents to save a copy of the impound analysis to Comments & Documents. Choose the comment category to use for storing the Initial Statement and Annual Statement.

Annual Statement

NLS 5.26 and later

Different statements may be used for different conditions after NLS runs an impound analysis. Documents to use are configured in Setup > System > Document Templates.

No Change in Payment There is no change in payment. This is when the escrow account has had no change from the prior year's projections. The escrow payment will remain the same for the next 12 months.
Shortage and DeficiencyClosedThe amount of a negative balance in the escrow account. It is a deficiency if escrow balance is negative after impound analysis. There is a shortage and deficiency. Deficiency is when there is a negative balance in the escrow account and typically will have shortage as well because it is calculating for the payments in the future
ShortageClosedThe amount by which a current escrow account balance falls short of the target balance at the time of impound analysis. There is a shortage. The difference between the actual balance and the new projected beginning balance is a shortage. Note that there will not be a negative number for the escrow actual balance when there is only a shortage. If it is negative, then it is a deficiency.
Surplus There is a surplus. Surplus is an amount by which the current escrow account balance exceeds the new projected beginning balance for the account.
Overage Handling Options

Enter the threshold amount of overage and the rules to apply to the overage amount.

Deficiency Handling Options

Select the action to take for when the deficiency is less than one month payment amount.