Finance
When a lender requires the borrower to pay a portion of annual property taxes each month into an escrow account, this practice is called:
AImpound (escrow) account maintenance✓ Correct
BTax withholding for the federal government
CA lien on the property
DProperty tax proration
Explanation
Lenders often require borrowers to maintain an impound (escrow) account where monthly amounts are deposited to cover property taxes and insurance, ensuring these obligations are paid when due.
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