Escrow & Title
Under RESPA, a lender may establish an escrow account for property taxes and insurance. This account is also called a:
ATrust account
BImpound account✓ Correct
CReserve account
DCollateral account
Explanation
An impound account (also called an escrow or reserve account) is maintained by the lender to collect monthly amounts for property taxes and insurance. The lender pays these bills when they come due, ensuring the property remains properly insured and taxes are current.
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