Escrow analysis
Definition
An escrow analysis is the servicer’s review of an escrow account. It estimates upcoming tax and insurance disbursements, sets the next escrow portion of the payment, and looks for a shortage or surplus.
In plain English
Money collected for property taxes and insurance sits in an escrow account. At intervals the servicer checks whether that account is on track. That check is the analysis. The result can be a shortage, a surplus, or no change. This page names the review. It does not state how a shortage must be repaid.
Technical definition
Fannie Mae’s consumer glossary includes an Escrow analysis heading. CFPB Regulation X defines the analysis as a trial running balance used to set target balances and to find shortage, surplus, or deficiency.
Why it matters
A monthly payment can change after an analysis even when the interest rate did not.
Example
Sam’s insurance premium rose. The next escrow analysis raises the escrow portion of the payment so the account can cover the new disbursement. The note rate is unchanged.
Related terms
Sources reviewed
Glossary of key terms
ObservedSeptember 4, 2026
Important note
This page does not state RESPA calendars, cushion formulas, or repayment options.