Unity Bank Escrow Analysis Disclosure 2022

Frequently Asked Questions

Why is my amount changing and how do I keep my payment amount the same as last year?

Property taxes, property insurance, and flood insurance are rarely the same rate year over year. As these amounts adjust, your escrow payment amount will adjust as well.

Why did the escrow cushion change to 1 month from what I had before?

Over the past 3 years Unity Bank has merged three charters into one. Each of these charters had different policies and procedures. To keep our systems consistent and to offer you a better customer experience, we are moving all escrow reserve accounts to 1-month to eliminate any confusion.

Why are we receiving this notice now?

Every year in June, Unity Bank processes the annual escrow account disclosure statement. This is done yearly.

How do I pay a deficiency or shortage so my payment is not affected?

You are welcome to pay the difference in full prior to August 1st, when the new payment goes into effect. If you choose not to pay the difference in full, it will be collected over the 12-month period.

When does my payment amount change?

Your new monthly payment goes into effect with your August 2022 payment.

Now that I have received my notice from the bank, what is next? Do I need to do anything with this notice?

Your payment amount may change beginning August 2022. If you have automatic payments set up, please be sure to update the amount to reflect your new payment amount.

I received a surplus check, why?

  • Your taxes and insurance amount decreased

  • Your escrow account was holding a 2 month cushion, which has been reduced to a 1 month cushion.

Can I redeposit my surplus check into my escrow account?

If you feel your escrow account will be short over the next 12 months, you are welcome to re-deposit the escrow check into your escrow account. Examples of items that may cause a shortage are:  A change in your insurance provider, a change in your insurance premium, an increase in your property taxes. Please keep in mind that in June 2023, your escrow account will be re-analyzed and if there are funds in excess of the 1 month cushion at that point, you will again receive an escrow refund check.
What if I cannot pay my shortage or deficiency at this point?

If you choose not to pay the amount in full, your monthly payment will be adjusted, beginning in August 2022, to collect the difference over a 12-month period.  You are not required to pay the amount in full prior to August, 2022. 

How can I have an escrow shortage, yet my payment amount went down?

Your taxes, property insurance, and/or flood insurance may have decreased from the previous year, or your escrow account may have had a 2-month cushion. With the change to a 1-month cushion for all customers, even though your escrow payment increased, your cushion may have decreased or vice versa.

What are my options for automatic payments?

The best option for automatic payments is to setup payments through our online banking platform at www.unitybanking.com. You can control when the payments are made and if you use the web browser instead of the app, you can set up recurring payments.

Can I pay my escrow shortage online?

No. Escrow shortage payments (if you desire to pay them at once) need to be processed by our bankers. You may mail us a check indicating this is an escrow shortage check or stop into your local branch to make the payment.

What if I had a coupon book to make my payments and there are no coupons left?

You can contact your banker for a new coupon book. There is also the ability to make your payments automatically through our online banking platform at www.unitybanking.com

Why do I need a cushion?

In an attempt to keep your escrow account from going negative, there is a cushion in your account of 1 month’s escrow payment to help absorb unforeseen adjustments due to increases in property tax or insurance premiums

What is private mortgage insurance (PMI)?

PMI, also known as private mortgage insurance, is a type of mortgage insurance from private insurance companies used with conventional loans where the initial loan amount exceeds 80% of the property’s value. Similar to other kinds of mortgage insurance policies, PMI protects the lender if you stop making payments on your home loan. PMI can be arranged by the lender and provided by private insurance companies. 

If you are required to pay private mortgage insurance, it typically makes up a portion of your monthly mortgage payment, in addition to your principal, interest, property tax, and homeowners insurance. Similar to interest, property tax, and homeowners insurance, payment of your PMI does not build equity in your home.

How do I stop having an escrow account?

Reach out to your Unity Banker for options. Depending on your loan type you may choose to pay your property taxes and insurance outside of your loan payment.

What do I do if I think there is an error?

Please reach out to your local Relationship Manager or Unity Bank’s Customer Care Team at 1-877-889-6847.

Glossary of Terms

Target Low Balance: The target low balance at Unity Bank is 1 month’s property taxes, property insurance, flood insurance, and/or private mortgage insurance.

Shortage: An escrow shortage is when there is a positive balance in the account but there is not enough money to pay the estimated tax and insurance in the future.

Deficiency: An escrow deficiency is when the escrow account balance is negative.

Surplus: An escrow surplus at Unity Bank is indicated by having more than the target low balance at the time of escrow analysis.

Last Year’s Projection: This is the statement received after June 4 2021, showing the estimated amounts needed for August 2021 through July 2022.

Projection for Coming Year: This is the estimated escrow amounts for August 2022 through July 2023.

Escrow Account History: This shows the actual escrow account activity from August 2021 through July 2022. June and July 2022 are estimates.