Getting to know your Escrow Account:

Each month a portion of your total mortgage payment is placed into your Escrow Account to cover your property tax and authorized insurance bills. We have built this guide to help you understand how escrow works and how to view your upcoming Escrow Analysis Statement. 

Frequently Asked Questions:

• Is my escrow payment in addition to my monthly mortgage payment?
  • No, your mortgage payment consists of 3 main components including principal, interest, and escrow. Each time you make a monthly payment, a portion of your payment is deposited into your personal Escrow Account.

• What is the purpose of an Escrow Account?
  • The Bank maintains an Escrow Account on your behalf to ensure your property taxes and all authorized insurance payments are made in a timely manner. 

• What determines my Required Minimum Escrow Balance?
  • According to Federal Law, the Bank can hold up to a two-month “cushion” of escrow funds. This Cushion or reserve are funds that we may require you to pay into an Escrow Account to cover unanticipated disbursements or disbursements made before your payments are available in the account.

• Why would my escrow payment amount change?
  • Your escrow payment can change for a variety of reasons including:
    • A rise in insurance premiums - reach out to your insurance provider
    • Increase in property taxes - reach out to your local tax office
    • If you have been notified about force-placed insurance
      
      
• What is force-placed insurance?
  • Force-placed insurance is a policy placed by Columbia Bank on a loan when the property owners' insurance:
    • Is cancelled
    • Has lapsed
    • Is deemed insufficient
    • Lacks updated proof of coverage
  • This insurance allows Columbia Bank to protect its financial interest in the property when the borrower fails to provide proof of coverage within the required time period.
    
    
• What happens when my escrow bills are lower than anticipated?
  • Your Escrow Analysis Statement will reflect a surplus. Surpluses of $50 or more are required to be returned within 30 days of Escrow Analysis. Surpluses of less than $50 will be evenly spread over the next 12 payments.

• What happens when my escrow bills are higher than expected?
  • Your Escrow Analysis Statement will reflect a shortage or a deficit of your Escrow Account. Here’s the difference:
    • A shortage: You do not have the required minimum balance for the coming year
    • A deficit: Your Escrow Account is negative. Rest assured, the Bank has paid your taxes and/or insurance, but you will be required to pay the deficit
      
      
• Paying a shortage or deficit can be done in 3 ways and Columbia Bank offers flexible options to choose from.
  • 12-Month Spread: No action is required; begin making your new monthly payment as of the effective date of your Escrow Statement.
  • One-Time Payment: Pay your shortage or deficit in full to reduce your new monthly payment.
  • Partial Payment: Pay part of your shortage or deficit to reduce your new monthly payment. 

• If you choose to make a one-time or partial payment, payments can be made by:
  • Selecting the "Pay Escrow Only" option under the Transfer Function within Personal Online Banking.
  • Visiting any Columbia Bank branch.
  • Mailing your payment to our corporate headquarters with attention to our Loan Servicing Department.
  • Authorizing the Bank to make a transfer via letter or email.

• Can my monthly payment still go up if I pay my shortage or deficit ahead of the new payment effective date?
  • Yes, if your projected property tax or authorized insurance payments are higher, your monthly payment amount may still go up.
    
    
• Why does my Annual Escrow Account Disclosure Statement have an additional charge with a description of "Force-Placed Ins- Allied Solutions"?
  • As a loan customer, your credit agreement with us requires you to maintain adequate insurance on your collateral until you pay off your loan. If during the period the Bank did not have proof of an active policy or a policy that met specified requirements, you were notified via letter.
  • In accordance with the terms of your credit agreement, Columbia Bank may have purchased insurance at your expense to protect our interests in your collateral. If insurance was purchased on your behalf, your Annual Escrow Account Disclosure Statement will have a charge with a description of "Force-Placed Ins- Allied Solutions." Allied Solutions is the Bank's selected vendor for insurance monitoring.
    
    
• I have insurance. What are the reasons the Bank may have force-placed an insurance policy?
  • There are a variety of reasons Columbia Bank may have purchased force-placed insurance:
    • Columbia Bank was notified that your insurance policy was canceled
    • You appear to have a lapse in coverage
    • Your policy is deemed insufficient
    • You have not submitted an updated policy satisfying proof of insurance
      
      
• I believe I have adequate insurance coverage. How can I request the cancelation of force-placed insurance?
  • If you believe you have had adequate and continuous insurance coverage and would like to request cancelation of force placed insurance, you may provide a copy of all applicable insurance policies to the Bank by calling 1-(800) 921-7118 or by leveraging the self-service chat feature available on www.myinsuranceinfo.com.
    
    
• Have any additional questions?
  • Please contact your local branch or our Customer Service Center at (800) 522-4167.