Finance
In South Dakota, 'escrow impounds' for property taxes and insurance in a mortgage payment mean:
AThe lender holds the funds and pays taxes and insurance when due✓ Correct
BThe borrower receives extra money each month for these expenses
CThe SDREC holds these funds in a state escrow account
DThese amounts are added to the loan principal
Explanation
Escrow impounds require the borrower to pay monthly amounts for property taxes and insurance into an escrow account held by the lender (or servicer), which then pays these obligations when due.
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