Loan Screens > Account Information Screen Group > Reserves Screen Group > Reserve Analysis Screen > Options, Limits & Loan Fields tab > Analysis Options field group

Entry: User, drop-down list

F/M: Yes

Mnemonic: ABSHTB

Screen: Loans > Account Information > Reserves > Reserve Analysis > Options, Limits & Loan Fields tab

This is where you choose which shortage option to use. The three options are as follows:

A	Allow Shortage (default)

B	Repayment within 30 days (only if it is less than one month's reserve payment)

C	Repayment over 12 months (requires repayment of shortage in equal monthly payments over a 12-month period)

Note: For FHA loans, no cushion is allowed on the mortgage insurance premium (FHA letter 95-20). The system does not include disbursement type 50 (FHA insurance premium) or type 58 (FHA risk-based insurance) in the cushion calculation.

Note: If you select option B requiring repayment within 30 days, and the calculated shortage is equal to or greater than one month's escrow payment, the system will default to option C and divide the shortage by 12.

Note: A deficiency is different than a shortage. A deficiency is any amount the lender has advanced from its own funds (the amount the reserve balance is below zero). A shortage is a calculated amount needed in the reserve by the time disbursements become due. You could have both a shortage and a deficiency on the same account.