Amendment to the Requirements for Escrow Cushions in Vermont

Pursuant to new legislation, as of August 14th, 2017, Cenlar is changing our standard escrow cushion for the state of Vermont from one month to two months for all new loans on-boarded with Cenlar. All Vermont loans on-boarded prior to August 14th serviced by Cenlar will retain the one month cushion.

The Vermont legislation referenced above, effective July 1, 2017, among other changes amends the requirements for escrow account cushions. Previously, Vermont allowed a maximum cushion of one-twelfth of the reasonably estimated total annual charges. With this change, Vermont is allowing a cushion of up to one-sixth of the reasonably estimated total annual charges.

Please notify the appropriate individuals in your organization to ensure they are aware of this change. If you require a different escrow analysis cushion for Vermont, please advise your Relationship Manager or me.