Finance
In Montana, the escrow account for property taxes and insurance maintained by a mortgage lender (impound account) must comply with RESPA requirements, which limit the lender's cushion to:
AOne month's escrow payment
BTwo months' escrow payment✓ Correct
CThree months' escrow payment
DSix months' escrow payment
Explanation
RESPA limits the lender's cushion in escrow (impound) accounts to no more than two months' worth of estimated escrow payments. This prevents lenders from collecting excessive amounts from borrowers for tax and insurance escrow.
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