Finance
What is the purpose of an escrow account held by a mortgage servicer?
ATo earn interest for the lender
BTo collect and disburse property taxes and insurance premiums on behalf of the borrower✓ Correct
CTo hold the buyer's down payment
DTo fund home repairs
Explanation
Mortgage servicers often require escrow accounts to collect monthly contributions toward property taxes and homeowner's insurance, ensuring those obligations are paid.
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