Finance
What is the purpose of an escrow impound account on a mortgage?
ATo hold the seller's proceeds until recording
BTo collect and pay property taxes and homeowner's insurance on behalf of the borrower✓ Correct
CTo deposit earnest money from the buyer
DTo hold funds for future renovations
Explanation
An escrow impound account held by the lender collects monthly amounts for property taxes and homeowner's insurance, ensuring these are paid when due.
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