Finance
A Georgia borrower's lender requires a property tax and insurance escrow account. This type of account:
AA. Holds the borrower's down payment
BB. Collects monthly payments from the borrower so the lender can pay taxes and insurance when due✓ Correct
CC. Earns interest for the lender
DD. Is required only for FHA and VA loans
Explanation
Impound/escrow accounts for taxes and insurance are funded by monthly additions to the mortgage payment. The lender collects and holds these funds, then pays property taxes and insurance premiums when they come due.
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