Finance
An 'impound account' (escrow account) maintained by a mortgage lender is used to:
AHold earnest money during the purchase transaction
BCollect and pay property taxes and insurance on behalf of the borrower✓ Correct
CReserve funds for future capital improvements
DHold disputed funds during a foreclosure
Explanation
A mortgage impound (or escrow) account collects monthly installments from the borrower for property taxes and homeowners insurance. The lender pays these bills on the borrower's behalf when due, ensuring they are always current.
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