A lender can make a higher-priced mortgage loan based on the value of the consumer's home without establishing an escrow account for the borrower's payments for insurance and taxes.

Question

Quizplus · Accepted Answer

Lenders are generally required to establish an escrow account for higher-priced mortgage loans to ensure that property taxes and insurance are paid, protecting both the borrower and lender.

A Lender Can Make a Higher-Priced Mortgage Loan Based on the Value