Finance
In Michigan, which of the following is an example of an 'impound account' (escrow account) maintained by the lender?
AThe broker's earnest money trust account
BAn account where the lender collects monthly amounts from the borrower to pay property taxes and insurance✓ Correct
CA savings account for the borrower's down payment
DThe seller's net proceeds account at closing
Explanation
An impound (escrow) account held by the lender collects monthly amounts from the borrower (included in the PITI payment) to pay property taxes and homeowner's insurance when they come due, protecting the lender's collateral.
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