By comparing the “Projected” to “Actual” disbursement columns in the table on page 2 of your annual escrow account statement, you can observe which disbursements (taxes or insurance) were greater than projected. See the sample escrow statement below for helpful tips on reading your statement.

These payments may have increased for several reasons. Some of the most common reasons are:

Tax Related

• An increase in your property tax rate (per thousand of assessed value)
• An increase in your property’s assessed value
• Changes in your tax due date. If your tax due date was moved forward, an escrow shortage will occur as not enough funds would have been collected when the bill came due

Insurance Related

• Increase in your insurance premiums
• Change in your insurance carrier. Typically the previous insurance carrier will refund the “unearned” premiums they collected. If these are not deposited into your escrow account a shortage will occur
• Changes in your insurance coverage. Did you increase coverage levels or reduce your deductibles?

Other

• Fewer deposits into your escrow account than expected. Have any “less-than-full” mortgage payments been made?

TIP:  Municipalities offer a few common tax exemptions for disability, homestead, senior and veteran status. Check with your local tax office to see if you are eligible for these, or any other exemptions.

Your new escrow payment is comprised of two components:

• The first is your anticipated tax and insurance expenses for the coming year. Your total anticipated tax and insurance expenses can be found on the top of page 3 of your annual escrow account statement.
• The second relates to maintaining a minimum required escrow account balance (reserve), which is determined by the Real Estate Settlement Procedures Act (RESPA), your mortgage contract or state law. The difference between your lowest projected balance in the coming year and your minimum required balance is your “shortage amount.” This appears on the bottom of page 3 of your annual escrow account statement. 
• See the sample escrow statement below for helpful tips on reading your statement.

These values are added together and divided by the number of scheduled payments for the coming year (usually 12) to arrive at your new escrow payment.

Follow these steps to view your most recent taxes and insurance costs online:

1. Log in to Online Banking
2. From the Account Summary page, select the M&T Mortgage link located under the Loans category
3. From the M&T Mortgage detail page, select the “View my Mortgage Info” button
4. Continue through to the M&T My Mortgage Info website
5. Select the “My Loan” drop down option and choose “Escrow”

Note: You can also find this information on your monthly billing statement under escrow activity.

Payments from your escrow account are determined on a yearly basis and changes in taxes/insurance may not be accounted for until it is time for the next escrow analysis. If you have documentation that shows a change in your taxes or insurance, please email it to eta@mtb.com.

If you have enrolled in M&T automated payments, you do not need to do anything. Your payment will adjust to the new amounts. If you have set up your payments with a third-party bill pay service or are transferring funds periodically from you M&T checking/savings account, you will need to adjust your payments to reflect the new payment amount.

You have two options:

1. Online: Log in to M&T Online or Mobile Banking, select your mortgage account and click the “Pay Now” button.
   
   Your mortgage loan must be current to use this option.
   
   
2. By Mail: Send a check made payable to M&T Bank and indicate on the memo line that you are making an escrow shortage payment.
   
   Please mail the check to:
   
   M&T Bank
   Escrow Department
   P.O. Box 64787
   Baltimore, MD 21264-4787.
   
   If you are paying your escrow shortage, the funds will be applied immediately, however your mortgage statement may not reflect changes until the analysis effective date.