Finance
An impound account (escrow account) maintained by a mortgage servicer is used to:
AHold funds for major home repairs
BCollect and pay property taxes and homeowner's insurance on behalf of the borrower✓ Correct
CHold funds for potential HOA assessments
DReserve funds for loan origination fees
Explanation
A mortgage servicer's impound (escrow) account collects 1/12 of the annual property taxes and homeowner's insurance premium with each monthly mortgage payment, then pays these bills when due.
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