Finance
A Connecticut buyer's lender requires an 'impound account' (escrow account). What does this account hold?
AThe buyer's earnest money deposit until closing
BMonthly deposits for property taxes and homeowner's insurance, which the lender pays on the borrower's behalf✓ Correct
CThe seller's proceeds until the deed is recorded
DThe broker's commission until after closing
Explanation
An impound (escrow) account collects monthly deposits from the borrower for property taxes and insurance. The lender manages these funds and pays the tax and insurance bills on the borrower's behalf when due.
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