Finance
What is an 'escrow impound account' in a Nevada mortgage?
AA trust account where the broker holds earnest money
BAn account maintained by the mortgage servicer where the borrower deposits monthly amounts for property taxes and insurance, which the servicer then pays on behalf of the borrower✓ Correct
CA court-ordered account for disputed mortgage payments
DA Nevada-specific account required for all FHA loans
Explanation
An escrow impound account is held by the mortgage servicer (lender). Each month, the borrower's payment includes principal, interest, and a portion for annual property taxes and insurance (PITI). The servicer accumulates these escrow amounts and pays the tax bill and insurance premiums when due. Most Nevada lenders require impound accounts for loans with LTVs above 80%. They protect lenders by ensuring taxes and insurance stay current.
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