How Do I Track Escrow Payments on a Loan?

ZimpleMoney's Escrow Payment Tracking feature lets lenders track escrow payments as unique disbursements per loan, giving you full visibility into escrow balances and deposits. This feature is available for every loan on the platform and is especially valuable for land contracts and seller-financed deals, where escrow for taxes and insurance is common. Both lenders and their borrowers get real-time visibility into escrow accounts and balances, reducing disputes and manual reconciliation work.

Before this feature, many lenders relied on spreadsheets and manual ledger updates to separate escrow fees from loan payments, which created several risks:

• Time-consuming manual work to separate escrow fees from loan payments and distribute funds properly
• Missed tax or insurance payments that could trigger penalties
• Lack of audit-ready records for compliance reviews

Built-in escrow tracking removes these pain points by automating fee separation, disbursement tracking, and reporting directly within your loan ledger.

1. Connect your escrow account. Link the designated account where escrow fee payments will be deposited.
2. Set up recurring escrow fees. Configure the escrow fee as a recurring charge tied to the loan.
3. Direct escrow payments to your account. Escrow fee payments are deposited directly into your designated escrow account, separate from standard loan payments.hubspot+1
4. Track escrow payments in the ledger. Each loan's ledger reflects escrow disbursements individually, so you can monitor balances and activity per loan.

What You Can Do With Escrow Tracking

Once set up, ZimpleMoney's escrow tools allow you to:

• Track disbursements per loan with full transparency
• Generate on-demand reports to streamline reconciliation
• Integrate escrow data via API with your preferred ecosystem
• Simplify management of taxes and insurance payments tied to a loan