Finance
A NH lender who approves a loan but requires the borrower to escrow for property taxes and insurance is doing so because:
AIt is required by NH state law for all mortgages
BEscrow ensures taxes and insurance are paid, protecting the lender's collateral from tax liens and uninsured losses✓ Correct
CBorrowers always prefer paying into escrow
DFHA requires it only for loans above $300,000
Explanation
Lenders require escrow accounts for taxes and insurance on higher-risk loans (LTV >80% or as required by loan type) to ensure these obligations are paid — preventing tax liens (which could have super-priority) and insurance lapses.
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