Escrow & Title
In Washington, 'impounds' or 'escrow accounts' maintained by a lender for a borrower's property taxes and insurance:
AEarn interest for the lender at the borrower's expense
BEnsure taxes and insurance are paid on time, protecting the lender's security interest✓ Correct
CAre required for all Washington mortgages by state law
DAre managed by the title insurance company
Explanation
Lender-maintained escrow (impound) accounts collect portions of annual property taxes and insurance premiums monthly with the mortgage payment. This ensures these critical expenses are paid on time, protecting the lender's collateral from tax sale or uninsured loss.
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