Finance
What is 'escrow impound account' in Idaho residential mortgage lending?
AThe broker's trust account
BA lender-controlled account where the borrower deposits funds monthly to pay property taxes and insurance when due✓ Correct
CAn account for disputed earnest money
DA temporary holding account for loan funds
Explanation
An escrow impound account is maintained by the lender as part of the monthly payment (PITI). The lender collects 1/12 of estimated annual property taxes and insurance each month, then pays these bills when due, ensuring they are paid on time.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
State-Specific Concepts
Trust Account Rules
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