Finance
When a Michigan lender 'impounds' taxes and insurance, they are:
ACharging additional fees for tax preparation
BCollecting monthly amounts from the borrower to be held in escrow and paid when due✓ Correct
CSeizing the property for non-payment of taxes
DHolding the title documents until the loan is repaid
Explanation
Impounds (escrow accounts) are monthly amounts collected from the borrower as part of the PITI payment and held by the lender to pay property taxes and insurance premiums when they come due, ensuring these obligations are paid.
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