Escrow, Insurance, & Taxes FAQ

The loss draft check needs to be endorsed first and sent to us along with the necessary documents outlined in the Insurance Claim Package. Once the check and the required paperwork has been submitted, we will review and contact you for next steps.  For additional information, select link to download Loss Draft Letter. (LINK for Loss Draft Letter PDF download)

Each loan and claim situation are different so there is no set timeframe for turnaround. However, please know that our most important objective is to release all insurance loss drafts as soon as possible so that the damages to your property can been completed with minimal inconvenience to you and your family.  (Insurance Claim Package)

Email: Insuranceloss@memberfirstmortgage.com
Fax: 616 588 9760
Mailing/Overnight Address:

Member First Mortgage, LLC
Attn: Insurance Loss
616 44th Street SE
Grand Rapids, MI 49548

For additional questions please contact our Escrow Team at (866) 636-1052 – Option 3

Hours: M-F 8:30am-630pm EST.

Private Mortgage Insurance is provided to protect the mortgage lender against losses that might be incurred if a loan defaults. Most often required on Conventional mortgage loans, the cost of Mortgage Insurance is usually paid by the borrower and is most often required if the loan amount is more than 80% of the home’s value.

Download the fillable PMI Request Form and email to Escrow Department for review of your request. – Mortgage Insurance Removal Request Form

Email: Escrow@memberfirstmortgage.com

Fax: 616 588 9760

Mailing/Overnight Address:

Member First Mortgage, LLC
Attn: Escrow
616 44th Street SE
Grand Rapids, MI 49548

For additional questions please contact our Escrow Team at (866) 636-1052 – Option 3, M-F 8:30am-630pm EST.

• If you have your property taxes escrowed with your mortgage. MFM will pay the property taxes by the due date or discount date.
• New Homeowners should contact their tax authority to verify if they have the primary residency exemption (PRE) or Homestead exemption. *Only if the home is your primary residency.
• At times when you purchase or refinance your home your tax authority may issue a supplemental bill. This supplemental bill will need to be paid by the homeowner. Supplemental Bills are not included when your escrow account is established.

If you have your homeowner’s insurance escrowed with your mortgage. MFM will pay the premium annually from your escrow account by the due date.

Changing to a new homeowners insurance company? You can use the refund from the previous insurance company to pay the new premium. If MFM pays the new insurance premium and has already paid the previous premium, you will want to deposit the refund into your escrow account. This will help to avoid a shortage as we only anticipate paying one premium annually.

You can send a copy of your homeowners insurance declarations page and premium bill to: MyInsuranceInfo.com

MFM also utilizes text messages for request when documentation is needed.

Mortgagee Clause

Member First Mortgage, LLC
ISAOA/ATIMA
PO BOX 3216
Carmel IN. 46082

Additional questions?
Contact our Escrow Team at (866) 636-1052, Option 3
Hours: M-F 8:30am-6:30pm EST.

An analysis is an annual review of the funds deposited into and paid out from your escrow account to make sure enough money is being collected to pay upcoming bills. This analysis identifies any surplus (excess funds) or shortage (insufficient funds.) The results of your escrow analysis are sent to you as your Annual Escrow Statement. An Escrow Analysis is done each year to update your payment to reflect changes made to your real estate tax and homeowner’s insurance costs, or changes in other escrowed items.

Shortage: The amount by which the current escrow balance is below the target starting balance. Shortages will be spread over the next 12 months and added to your new escrow payment.

Surplus: The amount the current escrow balance exceeds the “target starting balance”. If the surplus exceeds $50.00 and the loan is not delinquent, it will be automatically refunded.

Your payment may change after an escrow analysis because we reviewed your escrow account and updated it to reflect current costs.

Each year, we compare what was collected in your escrow account to the actual amounts paid for items like:

• Property taxes
• Homeowner’s insurance
• Other escrowed items, if applicable

If these costs increased or decreased, or if your escrow account had a shortage or surplus, your monthly payment may be adjusted to make sure enough funds are available when those bills are due.

Common reasons for a payment change include:

• An increase or decrease in property taxes
• A change in your insurance premium
• Making up for a prior escrow shortage
• Reducing payments after an escrow surplus

Your escrow analysis statement explains exactly how your new payment was calculated. If you have questions after reviewing it, we’re always happy to help.

If your escrow analysis shows a shortage, you generally have two options:

1. You can pay the shortage in full, which may help keep your monthly payment closer to what it is now.
2. If you don’t pay it upfront, the shortage is typically spread out over 12 months, which would increase your payment during that time.

If your taxes or insurance increased, your payment may still change to cover those higher costs.

Your escrow analysis statement will outline your options, and we’re happy to walk through it with you and answer any questions.

Possibly—it depends on your loan terms.

Some loans allow escrow to be removed if certain requirements are met, such as having enough equity in your home and a strong payment history. If your loan is eligible, you may be able to request an escrow waiver and pay your property taxes and insurance directly.

Not all loans allow escrow to be waived, and there may be fees or specific conditions involved.

If you’re interested in exploring this option, please contact us so we can review your loan and let you know what’s available to you.

Your escrow analysis statement explains how your escrow account was reviewed and how your payment was calculated for the upcoming year. Here’s how to read it:

1. Review the Account History
   • Start with the Escrow account history section.
   • This shows what was budgeted (expected) for your taxes and insurance versus what was actually paid (disbursed).
   • Comparing these amounts helps explain why there may be a shortage, surplus, or payment change.
2. Projected Escrow Payments
   • This section lists the estimated amounts we expect to pay over the next year for items like property taxes and homeowner’s insurance.
   • These estimates are based on the most recent bills we have on file.
3. Escrow Account Balance
   • Here you’ll see whether your account ended with a shortage or surplus:
     • A shortage means there weren’t enough funds to cover past payments.
     • A surplus means more was collected than needed.
4. Shortage or Surplus Options
   • If there’s a shortage, it’s typically spread over 12 months, and you may also have the option to pay it in full.
   • If there’s a surplus, it may be refunded to you or applied to future payments, depending on the amount.
5. Payment Breakdown
   • The first page includes a breakdown showing how much of your payment goes toward:
     • Principal and interest
     • Escrow (taxes, insurance, and other items)
     • Shortage spread (if applicable)

If you have questions while reviewing your statement, we’re happy to go over it with you and help explain how it affects your payment.