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A CRMLA-licensed mortgage servicer collects escrow payments from borrowers. What is the servicer's primary obligation regarding these escrow funds?

Correct Answer

A) Maintain escrow funds in a trust account and make timely payments for taxes and insurance

CRMLA servicers must hold escrow funds in a trust account and ensure timely payment of property taxes, insurance premiums, and other escrowed obligations. Commingling escrow funds with operating funds is strictly prohibited.

Answer Options
A
Maintain escrow funds in a trust account and make timely payments for taxes and insurance
B
Invest the escrow funds in high-yield accounts to maximize returns for the borrower
C
Transfer all escrow funds to the original lender on a monthly basis
D
Commingle escrow funds with the servicer's operating account for efficiency

Why This Is the Correct Answer

CRMLA servicers must hold escrow funds in a trust account and ensure timely payment of property taxes, insurance premiums, and other escrowed obligations. Commingling escrow funds with operating funds is strictly prohibited.

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