Finance
What does 'escrow impound' mean in the context of a Pennsylvania mortgage?
AThe funds held by the attorney at closing pending title clearance
BA mortgage account where the borrower's monthly payment includes property taxes and insurance, held by the lender for payment when due✓ Correct
CThe deposit held by the listing broker in a trust account
DA PADEP account holding funds for environmental remediation
Explanation
An escrow impound (or escrow account) is maintained by the mortgage servicer to collect and pay property taxes and insurance on behalf of the borrower. The borrower's monthly payment includes 1/12 of annual taxes and insurance premiums, which accumulate in the escrow account.
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