Finance
A Texas mortgage statement shows an escrow impound account. This account is used to:
AHold the borrower's personal savings
BCollect monthly amounts from the borrower to pay property taxes and insurance premiums when due✓ Correct
CCompensate the servicer for loan administration
DAccumulate a reserve for capital improvements
Explanation
The escrow (impound) account is maintained by the lender/servicer and funded by monthly contributions from the borrower (added to the P&I payment). When property taxes and insurance premiums are due, the servicer pays them from this account.
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