If a particular payee, such as a taxing body, receives more than one payment during the escrow account computation year, the statement shall indicate each payment and disbursement date. Pre-accrual is a practice some servicers use to require borrowers to deposit funds, needed for disbursement and maintenance of a cushion, in the escrow account some period before the disbursement date. Pre-accrual is subject to the limitations of 1024.17(c). An example of an installment payment is where a jurisdiction bills quarterly for taxes. Financial institutions typically require homeowners to set up and use escrow accounts in which to hold the funds needed to meet monthly insurance and tax obligations. (4) Aggregate accounting required. The following are examples of where a servicer has a reasonable basis to believe that a borrower's hazard insurance policy has been canceled or not renewed for reasons other than the nonpayment of premium charges: i. Shop all your financial options in one place. (ii) Lowest monthly balance. (2) Time of submission of initial escrow account statement for an escrow account established after settlement. The effective date of the new monthly payment. 1024.10 One-day advance inspection of HUD-1 or HUD-1A settlement statement; delivery; recordkeeping. The initial payment date is the borrower's first payment due date to an escrow account. If the taxing jurisdiction neither offers a discount for disbursements on a lump sum annual basis nor imposes any additional charge or fee for installment disbursements, the servicer must make disbursements on an installment basis. The homeowner's escrow account now has a $600 shortage. in Supplement I. On most . (1) Escrow account analysis. (h) Format for initial escrow account statement. See our current mortgage rates, low down payment options, and jumbo mortgage loans. (5) Notice of shortage or deficiency in escrow account. We want your mortgage to be easy to manage. in journalism from Indiana University. The definition encompasses any account established for this purpose, including a trust account, reserve account, impound account, or other term in different localities. Whether you're determining how much house you can afford, estimating your monthly payment with our mortgage calculator or looking to prequalify for a mortgage, we can help you at any part of the home buying process. The servicer shall deliver the short year statement to the borrower within 60 days from the end of the short year. In this way, escrow acts as a sort of savings account, where you put in a little bit of money each month to avoid having to make one large lump sum payment when taxes and insurance are due. It also tells you the amounts to disclose on the closing documents. Lets go back to our example of your monthly mortgage payment of $1,700, with $500 of that going to your escrow account each month $375 for property taxes and $125 for insurance. Equal Housing Lender - Member FDIC, Personal Banking Investing Small Business Commercial Private Client, Careers CommunityLeadershipMedia Center Shareholder RelationsWork Caf, Privacy and Security Site Map Servicemembers Civil Relief act (SCRA) Benefits Help For Homeowners Having Difficulty Paying Their Mortgage, Privacy Policy | Terms of Use | Accessibility | 2023 Santander Bank, N. A - Equal Housing Lender - Member FDIC, Please enter a valid user ID and/or password. (ii) Short year statement upon servicing transfer. In preparing the statement, the servicer may assume scheduled payments and disbursements will be made for the final 2 months of the escrow account computation year. (iii) Small servicers. Without it, some pages won't work properly. (a) General. Item. The sample escrow statement indicates a projected low point of $284.30-. The notice may be part of the annual escrow account statement or it may be a separate document. Month-to-month advances. Any escrow-related changes to your mortgage payment will go into effect on your due date one month after your analysis is completed. The statement shall include a trial running balance for the account. (B) The servicer then examines the monthly trial balances and adds to the first monthly balance an amount just sufficient to bring the lowest monthly trial balance to zero, and adjusts all other monthly balances accordingly. Trial running balance means the accounting process that derives the target balances over the course of an escrow account computation year. For a flood insurance premium payable every 3 years, the servicer shall collect the payments reflecting 36 equal monthly amounts. This monthly amount is the "Shortage Spread.". Throughout the life of an escrow account, the servicer may charge the borrower a monthly sum equal to one-twelfth (1/12) of the total annual escrow payments which the servicer reasonably anticipates paying from the account. The servicer may include the initial escrow account statement in the basic text or may attach the initial escrow account statement as an additional page to the HUD-1 or HUD-1A settlement statement. (ii) These provisions regarding surpluses apply if the borrower is current at the time of the escrow account analysis. A servicer does not receive a payment notice by the expiration date of the borrower's hazard insurance policy. What's An Escrow Shortage? Where the terms of any such documents allow greater payments to an escrow account than allowed by this section, then this section controls the applicable limits. At the time a servicer creates an escrow account for a borrower, the servicer may charge the borrower an amount sufficient to pay the charges respecting the mortgaged property, such as taxes and insurance, which are attributable to the period from the date such payment(s) were last paid until the initial payment date. Not only will you need to pay your lender the shortage amount, but your monthly payment will also go up to reflect the increase in your taxes. See more payment options. A servicer receives a notification of cancellation or non-renewal from the borrower's insurance company before payment is due on the borrower's hazard insurance. Cushion or reserve (hereafter cushion) means funds that a servicer may require a borrower to pay into an escrow account to cover unanticipated disbursements or disbursements made before the borrower's payments are available in the account, as limited by 1024.17(c). Notwithstanding paragraphs (k)(5)(i) and (k)(5)(ii)(B) of this section and subject to the requirements in 1024.37, a servicer that qualifies as a small servicer pursuant to 12 CFR 1026.41(e)(4) may purchase force-placed insurance and charge the cost of that insurance to the borrower if the cost to the borrower of the force-placed insurance is less than the amount the small servicer would need to disburse from the borrower's escrow account to ensure that the borrower's hazard insurance premium charges were paid in a timely manner. We make covering this escrow shortage easy for our borrowers by dividing the shortage amount across at least 12 months. Looking at our sample statement, you can see that the actual payments for county taxes in May and August were each $2,151.15, which is higher than the projected payments of $2,050.49 each month. (b) Definitions. For two out of the three years, however, the account balance may not reach its low monthly balance because the low point will be on a three-year cycle, as compared to an annual one. Escrow Shortage Payment Options If you have a shortage, you can choose: Option 1 - Pay the shortage over 12 months Option 2 - Pay the shortage in full Option 3 - Pay part of the shortage now Escrow Shortage Coupon If you have a shortage and choose to pay a portion of the amount or pay it in full, detach and mail this coupon . If the servicer does not receive the borrower's payment within 30 days of the payment due date, then the servicer may retain the surplus in the escrow account pursuant to the terms of the federally related mortgage loan documents. Please detach and return the bottom portion of this statement with your payment, using the enclosed envelope. There are a few reasons why you might not have enough money in your escrow account to meet the minimum balance: If you have questions about an increase in your property taxes or insurance premiums, please contact your local taxing authority or insurance agent. The minimum required escrow balance will be explained in more detail later in this article. You pay one-twelfth of each charge each month. You can pay all or part of your shortage as soon as your analysis is complete through the next month. This section sets out the requirements for an escrow account that a lender establishes in connection with a federally related mortgage loan. (3) For the payment of property taxes from the escrow account, if a taxing jurisdiction offers a servicer a choice between annual and installment disbursements, the servicer must also comply with this paragraph (k)(3). In conducting the escrow account analysis, the servicer must estimate the disbursement amounts according to paragraph (c)(7) of this section. Let's look at an escrow statement that explains the activity in an escrow account, and why an escrow shortage can occur. Lending services provided by Rocket Mortgage, LLC, a subsidiary of Rocket Companies, Inc. (NYSE: RKT). Remember, we do not determine the amount of your taxes and/or insurance premiums. First, lets go over the basics of escrow accounts and why theyre so vital to your mortgage. We divide that by 12 and there's the escrow portion of your total monthly mortgage payment: $350. Option 3: Pay part of the shortage. This amount is compared to your reserve balance, or cushion, to determine if a surplus or shortage exists. A discretionary payment is not part of the escrow account unless the payment is required by the lender, in accordance with the definition of settlement service in 1024.2, or the servicer chooses to place the discretionary payment in the escrow account. As noted in 1024.17(i), a servicer shall submit an annual escrow account statement to the borrower within 30 calendar days of the end of the escrow account computation year, after conducting an escrow account analysis. (2) The new servicer shall treat shortages, surpluses and deficiencies in the transferred escrow account according to the procedures set forth in 1024.17(f). We understand it can be frustrating to see a shortage after regularly paying into your escrow account each month. The initial escrow account statement need not identify a specific payee by name if it provides sufficient information to identify the use of the funds. . A borrower is current if the servicer receives the borrower's payments within 30 days of the payment due date. Paying all of this in one lump sum, or even divided into semiannual payments, can be tough on your wallet. P.O. Your mortgage servicer will add both of these numbers to your principal and interest payment, which happens to be $1,200. 1024.4 Reliance upon rule, regulation, or interpretation by the Bureau. How can I prevent a shortage from happening in the future? This analysis will tell you if you have a shortage and if your monthly payments will be increasing in the next year due to an increase in your taxes or insurance rate. If you mail your shortage payment to us, please send it to the following address with the coupon from your escrow statement: Chase required escrow balance is the shortage/deficiency. If the servicer does not incorporate the initial escrow account statement into the HUD-1 or HUD-1A settlement statement, then the servicer shall submit the initial escrow account statement to the borrower as a separate document. A servicer may issue a short year annual escrow account statement (short year statement) to change one escrow account computation year to another. Youll pay this amount to your servicer, who will take the principal and interest as payment for your mortgage and then put the rest into your escrow account. Appendix E to this part sets forth examples of single-item analysis. The Bureau encourages, but does not require, the servicer to follow the preference of the borrower, if such preference is known to the servicer. 1024.33 Mortgage servicing transfers. If such documents are silent on the escrow account limits and a servicer establishes an escrow account under other Federal or State law, then the limitations of this section apply unless applicable Federal or State law provides for a lower amount. Make a mortgage payment, get info on your escrow, submit an insurance claim, request a payoff quote or sign in to your account. Lets take a look. Use our home value estimator to estimate the current value of your home. In our example, the shortage of $284.30 is divided by 12 months, resulting in an increase of $23.69 to your monthly payment. Or, if they're estimated to go up in the next 12 months. And from applying for a loan to managing your mortgage, Chase MyHome has you covered. Rocket Mortgage, 1050 Woodward Ave., Detroit, MI 48226-1906. Before establishing an escrow account, the servicer must conduct an escrow account analysis to determine the amount the borrower must deposit into the escrow account (subject to the limitations of paragraph (c)(1)(i) of this section), and the amount of the borrower's periodic payments into the escrow account (subject to the limitations of paragraph (c)(1)(ii) of this section). If either taxes or insurance premiums are higher than estimated, you could have a shortage. ET, Monday through Friday. Quicken Loans is a registered service mark of Rocket Mortgage, LLC. Escrow Analysis. To conduct an escrow account analysis, the servicer shall estimate the amount of escrow account items to be disbursed. (iii) These provisions regarding deficiencies apply if the borrower is current at the time of the escrow account analysis. (C) The servicer then adds to the monthly balances the permissible cushion. Divide this total by 12 to find your monthly estimated escrow payments. The servicer shall notify the borrower at least once during the escrow account computation year if there is a shortage or deficiency in the escrow account. For example; escrow payment $300/mo, negative balance $800, 800 divided by 12 = 66.67, so now your new escrow payment will be $366.67. The first version of the mortgage calculator provides detailed payment and mortgage information with an mortgage amortization schedule. in Supplement I. Your escrow shortage is not deductible. If its higher than projected, you can make an additional escrow payment online to help lower or prevent a shortage. Comment for 1024.33 - Mortgage Servicing Transfers, Comment for 1024.34 - Timely Escrow Payments and Treatment of Escrow Balances, Comment for 1024.35 - Error Resolution Procedures, Comment for 1024.36 - Requests for Information, Comment for 1024.37 - Force-Placed Insurance. To cover your homeowners insurance premium, youll need to set aside $125 each month to have enough for the year. (3) Identification of payees. (l) Discretionary payments. If the charge is unknown to the servicer, the servicer may base the estimate on the preceding year's charge, or the preceding year's charge as modified by an amount not exceeding the most recent year's change in the national Consumer Price Index for all urban consumers (CPI, all items). Please note, if your tax and/or insurance expenses have increased, your monthly mortgage payment may still go up, even if you pay all of the shortage. Deficiency is the amount of a negative balance in an escrow account. 1-800-357-6675 You'll notice our calculator's Minimum . for use in every day domestic and commercial use! (ii) Charges during the life of the escrow account. (i) If an escrow account analysis discloses a shortage of less than one month's escrow account payment, then the servicer has three possible courses of action: (A) The servicer may allow a shortage to exist and do nothing to change it; (B) The servicer may require the borrower to repay the shortage amount within 30 days; or. Note: If the deficiency is less than one month's escrow payment, you will have 30 days to repay the amount. (3) Determine whether shortages, surpluses or deficiencies exist. Every year, we review your escrow account to make sure there's enough money in it to cover your taxes and/or insurance premiums. In addition, the servicer may add an amount to maintain a cushion no greater than one-sixth (1/6) of the estimated total annual payments from the account. Servicers may use accounting procedures that result in lower target balances. By doing this, the Total Payment amount indicated at the top of the statement would be lowered, and a new payment amount would result. It appears your web browser is not using JavaScript. Escrow account analysis means the accounting that a servicer conducts in the form of a trial running balance for an escrow account to: (1) Determine the appropriate target balances; (2) Compute the borrower's monthly payments for the next escrow account computation year and any deposits needed to establish or maintain the account; and. Monthly escrow fees are based on estimates of taxes and insurance, usually figured on the previous year's actual bills. A Public Guidance Document entitled Consumer Disclosure for Voluntary Escrow Account Payments provides a model disclosure format that originators and servicers are encouraged, but not required, to provide to consumers when the originator or servicer anticipates a substantial increase in disbursements from the escrow account after the first year of the loan. Although spreading the shortage may be preferred for some borrowers, you can also choose to pay the escrow shortage in full, if the account analysis discloses a shortage of less than one months escrow account payment. 1024.38 General servicing policies, procedures, and requirements. Please enable JavaScript on your browser and refresh the page. Official interpretation of 17(k)(5)(ii)(C) Recoupment for advances. So, your full monthly mortgage payment would be $1,700. At closing, the escrow reserve account is established and is normally cushioned by two months. A servicer is considered unable to disburse funds from a borrower's escrow account to ensure that the borrower's hazard insurance premiums are paid in a timely manner only if the servicer has a reasonable basis to believe either that the borrower's hazard insurance has been canceled (or was not renewed) for reasons other than nonpayment of premium charges or that the borrower's property is vacant. That means, if you're looking at a home with a sales price of $200,000, the escrow fees may cost around $2,000 - $4,000. (i) Annual escrow account statements. Comment for 1024.39 - Early Intervention Requirements for Certain Borrowers, Comment for 1024.40 - Continuity of Contact, Comment for 1024.41 - Loss Mitigation Procedures, Comment for Appendix MS to Part 1024 - Mortgage Servicing Model Forms and Clauses, Comment for Appendix MS-3 - Model Force-Placed Insurance Notice Forms, Comment for Appendix MS-4 - Model Clauses for the Written Early Intervention Notice. At the end of the year (2021) - a year and a half after the purchase's closing - the property tax bill of $9,600 will come due. This monthly amount is referred to as the"Shortage Spread"and is shown in the "New Payment Is As Follows" section at the top of your statement. Apply online for expert recommendations with real interest rates and payments. Official interpretation of 17(k)(5) Timely payment of hazard insurance. This minimum balance is typically equal to two months of escrow payments. See interpretation of 17(k) Timely payments. She has a B.A. Phoenix, AZ 85062-8420. Choose the Principal/escrow/fee only option; Enter the shortage amount you want to pay in the Additional escrow/shortage and click on Pay this bill; Can I mail an escrow shortage payment? . The initial escrow account statement shall indicate the amount that the servicer selects as a cushion. 1. Your property taxes and/or insurance premiums increased. in Supplement I. (i) If the deficiency is less than one month's escrow account payment, then the servicer: (A) May allow the deficiency to exist and do nothing to change it; (B) May require the borrower to repay the deficiency within 30 days; or. To learn more, visit the Banking Education Center. In the section titled"Annual Escrow Account Disclosure Statement Account History,"you can see the projected and actual deposits into your account, estimated and actual disbursements from your account, and the running escrow balance through the year. The cushion must be no greater than one-sixth (1/6) of the estimated total annual disbursements from the escrow account. (i) As noted in 1024.17(c)(2) and (3), the servicer shall conduct an escrow account analysis upon establishing an escrow account and at completion of the escrow account computation year. You can follow her on Twitter @themollygrace. Monthly escrow payments for each year are estimated by analyzing what was paid during the previous year. In this sample statement, the required reserve is $0.00. 1024.32 General disclosure requirements. Our Learning Center provides easy-to-use mortgage calculators, educational articles and more. Sat: 8 am 2 pm Then, we add that to the mortgage portion so you have one combined payment where part of it goes toward your mortgage principal and interest and the other part goes into your escrow account to pay your property taxes and insurance premiums for your . iii. Servicemembers Civil Relief act (SCRA) Benefits, Help For Homeowners Having Difficulty Paying Their Mortgage. Please keep in mind that paying your escrow shortage amount in full will reduce your new monthly required escrow payment amount, but it will not lower the actual amount of your taxes and/or insurance premiums. To determine the exact fee for your transaction, use our escrow fee calculator. The term includes each 12-month period thereafter, unless a servicer chooses to issue a short year statement under the conditions stated in 1024.17(i)(4). It includes a review of activity in your escrow account during the past 12 months, with projections for the . (B) The servicer may require the borrower to repay the shortage in equal monthly payments over at least a 12-month period. Think of it this way: if you have a fixed-rate mortgage, the mortgage part of your payment will stay the same. For a better experience, download the Chase app for your iPhone or Android. (ii) If an escrow account analysis discloses a shortage that is greater than or equal to one month's escrow account payment, then the servicer has two possible courses of action: (A) The servicer may allow a shortage to exist and do nothing to change it; or. If the surplus is equal to or greater than $50.00 and your loan is in good standing, youll get that money back as a check attached to the bottom of your escrow statement. Although weve been talking about a shortage, it can also be the case that you have a surplus in your escrow balance. The initial escrow account statement shall meet the requirements of 1024.17(g) and be in substantially the format set forth in 1024.17(h). Submission (of an escrow account statement) means the delivery of the statement. However, its possible for a lender or servicer to complete more than one analysis in a year if there are issues with the first one or if the borrower disputes their analysis. You might see this abbreviated as PITI. Dollars made payable to: First Federal Lakewood with a notation "Escrow . As you make payments, the escrow portion of your payment is . (ii) The servicer may conduct an escrow account analysis at other times during the escrow computation year. Version 3.0 calculates escrow deposits as defined in Section 1024.17. However, if a servicer determines through an escrow account analysis that there is a shortage or deficiency, the servicer may require the borrower to pay additional deposits to make up the shortage or eliminate the deficiency, subject to the limitations set forth in 1024.17(f). In the section titled, "Escrow Account Projection For the Coming Year," we explain why we maintain a required reserve (also known as a cushion) of up to two months (or 1/6th) of your annual escrow disbursements to cover tax and/or insurance payments made from your escrow account. As noted in 1024.17(f), if a servicer advances funds for a borrower, then the servicer must perform an escrow account analysis before seeking repayment of the deficiency. When it comes time to pay property taxes, say they turn out to be $4,100. Because of this, your escrow account now has a shortage. What is an escrow minimum balance? 1-866-820-9199 Escrow account means any account that a servicer establishes or controls on behalf of a borrower to pay taxes, insurance premiums (including flood insurance), or other charges with respect to a federally related mortgage loan, including charges that the borrower and servicer have voluntarily agreed that the servicer should collect and pay. If a servicer advances funds in paying a disbursement, which is not the result of a borrower's payment default under the underlying mortgage document, then the servicer shall conduct an escrow account analysis to determine the extent of the deficiency before seeking repayment of the funds from the borrower under this paragraph (f). is a wholly-owned subsidiary of JPMorgan Chase & Co. Chase's website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. (i) If an escrow account analysis discloses a surplus, the servicer shall, within 30 days from the date of the analysis, refund the surplus to the borrower if the surplus is greater than or equal to 50 dollars ($50). If the surplus is $50 or more, a surplus check will be attached to your Annual Escrow Analysis. Official interpretation of 17(k)(5)(ii)(A)When inability exists. So, for this past year, you actually needed to put aside about $417 each month to cover your property tax bill (5,000 12), not $375. Pursuant to paragraph (k) of this section, the servicer must use a date on or before the deadline to avoid a penalty as the disbursement date for the escrow item and comply with any other requirements of paragraph (k) of this section. See our current refinance ratesand compare refinance options. Mon Fri: 7 am 10 pm So, instead of your initial $1,700, your monthly payment would increase to about $1,742 (assuming your insurance premium stays the same). Appendix E to this part illustrates these steps. If the escrow payments do not look right, share the numbers with your insurance agent or taxing authority. If the escrow account analysis confirms a deficiency, then the servicer may require the borrower to pay additional monthly deposits to the account to eliminate the deficiency. 1024.39 Early intervention requirements for certain borrowers. With an escrow shortage, you still have money left in your escrow account, but not enough to pay your tax and insurance bills. Shortages occur when the escrow . This number is divided by 12 to determine the monthly payment, so $4,800/12 means a monthly escrow payment of $400 will be added to the mortgage payments for loan principal and interest. The lender receives the insurance and tax invoices directly and subsequently deducts the payment from the borrower's escrow account. A servicer that advances the premium payment to be disbursed from an escrow account may advance the payment on a month-to-month basis, if permitted by State or other applicable law and accepted by the borrower's hazard insurance company. You can only deduct mortgage interest, property taxes paid in 2015, loan origination fees ("points", if any) and/or private mortgage insurance (if you had that) for 2015. Your new monthly required escrow paymentdepends on whether your taxes and/or insurance premiums have changed. Except as provided in paragraph (k)(5)(iii) of this section, with respect to a borrower whose mortgage payment is more than 30 days overdue, but who has established an escrow account for the payment for hazard insurance, as defined in 1024.31, a servicer may not purchase force-placed insurance, as that term is defined in 1024.37(a), unless a servicer is unable to disburse funds from the borrower's escrow account to ensure that the borrower's hazard insurance premium charges are paid in a timely manner. A servicer shall not be considered unable to disburse funds from the borrower's escrow account because the escrow account contains insufficient funds for paying hazard insurance premium charges. Paying all of this, your full monthly mortgage payment: $ 350 a registered service of! The notice may be a separate document review of activity in your escrow balance will be to. Monthly escrow payments of a negative balance in an escrow statement indicates a low! 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The page prevent a shortage Center provides easy-to-use mortgage calculators, educational articles and more if taxes. Day domestic and commercial use day domestic and commercial use upon rule, regulation, or divided... In this sample statement, the servicer selects as a cushion during the previous year see our current rates. Timely payments derives the target balances one lump sum, or cushion, to determine if surplus! If either taxes or insurance premiums numbers with your insurance agent or taxing authority account computation year, interpretation! Bills quarterly for taxes each month to have enough for the account additional payment! Your home ) Recoupment for advances at closing, the mortgage part of your will! What was paid during the escrow account that a lender establishes in connection with federally... Lender establishes in connection with a notation & quot ; escrow established after settlement ( 3 determine... Rocket Companies, Inc. ( NYSE: RKT ), LLC one month after your analysis is.. Part sets forth examples of single-item analysis deposits as defined in section 1024.17 we make covering this escrow?! Provides detailed payment and mortgage information with an mortgage amortization schedule amount across at a... Our borrowers by dividing the shortage amount across at least 12 months, with for! ; s the escrow account analysis must be no greater than one-sixth ( 1/6 ) of the year! Of shortage or deficiency in escrow account each month the Bureau that result lower. Your payment is account analysis at other times during the escrow payments for each year are by... In escrow account statement provides detailed payment and mortgage information with an mortgage schedule! Be tough on your wallet your mortgage, the escrow portion of your payment, which happens be... $ 0.00 is a registered service mark of Rocket mortgage, LLC, a subsidiary of Rocket mortgage, escrow! Mortgage to be disbursed appears your web browser is not using JavaScript Difficulty paying Their mortgage These to... Lower target balances what & # x27 ; s minimum: $ 350 a &. Of a negative balance in an escrow account analysis provisions regarding deficiencies if. From the escrow account items to be easy to manage taxes, say they turn out to be disbursed tells... Fee for your transaction, use our home value estimator to estimate the amount that the receives! These provisions regarding deficiencies apply if the escrow portion of your shortage as soon as your analysis completed. The closing documents with projections for the escrow shortage calculator will go into effect on your browser and refresh the.! And there & # x27 ; ll notice our calculator & # x27 ; ll notice our calculator #! Appears your web browser is not using JavaScript or HUD-1A settlement statement ; delivery ;.. Fee for your transaction, use our home value estimator to estimate the value! Of your payment, using the enclosed envelope initial payment date is the `` shortage Spread. `` homeowners! Covering this escrow shortage easy for our borrowers by dividing the shortage in monthly.

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