Join the WMC Escrow Account Program

What is an escrow account?
An escrow account is established to collect funds for future insurance premiums and current year’s property tax liability. The escrow payment is added to your currently scheduled mortgage payment.

How does an escrow account benefit you?

• Works much like a savings account to pay property taxes and required insurance.
• Escrow accounts provide a service to you by assuring taxes, insurance and other escrow items are paid on time and to the appropriate entities.
• Should WMC fail to make timely payments and a late charge or fee is assessed, then WMC is responsible for paying those penalties and interest.
• Most importantly, an escrow account helps manage household budgets by spreading manageable monthly payments for taxes and insurance over a period of time instead of having one large payment.
• Peace of mind knowing your taxes and insurance are being taken care of through your escrow account.
  

What is your obligation with escrow?
After providing acceptable proof of insurance and a recent paid tax statement, simply make the required monthly installments including the manageable monthly escrow payment.

What are the components of an escrow account?
Escrow account components do not include life insurance or similar insurance and items not required to pay as a condition of the mortgage. The following are the most common payables that can be established as escrow items for mortgages:

• Hazard Insurance
• Ad Valorem Property Taxes
• Flood Insurance

How do I contact the Escrow Dept at WMC?
Fax: is 813-871-4017 (attn. Escrow Dept.)
Telephone: 800-277-2321
Address: P.O. Box 30487, Tampa, FL 33630-3487

Common Terminologies

Annual Escrow Account Statement/Disclosure – Servicers must provide current customers with an annual escrow account statement within 30 days of the end of the escrow computation year. The annual Escrow Account Disclosure Statement consists of both a history of the last 12 months and a projection of the expected disbursements for the next 12 months.

Initial Escrow Account Statement – This is the first disclosure statement that the servicer delivers to the customer concerning the escrow account. This statement shows the escrow activity expected to occur during the first 12 months of the account.

Short-Year Escrow Account Statement – A Short-Year Statement is conducted to end the escrow account computation year and establish a beginning date for the new escrow account year or when the escrow account is closed.

Cushion – A cushion is an amount of money that a servicer may require a customer to pay into an escrow account to cover unexpected disbursements or disbursements made before the customer’s payments are available in the escrow account. The cushion allotment is dictated by RESPA, which allows a 2 month cushion. Walter Mortgage Company has chosen a 1 month cushion.

Escrow Deficiency – An escrow deficiency is a negative escrow balance created by a disbursement.

Escrow Shortage – A negative difference between the escrow account balance and the target balance.

Surplus – The amount by which the current escrow account balance exceeds the target balance for the account. Amounts equal to or greater than $50.00 are returned to the customer.