Are Mortgage Escrow Accounts Required by Law?
No. But your lender or mortgage holder can require them based on certain stipulations that they determine. You can also volunteer to have an escrow account opened for you, which serves the purpose of making your lender responsible for your annual tax and homeowner’s insurance payments so you don’t have to worry about it. Closing agents or real estate attorneys are not required by law to be involved in the process at all except to collect, disburse and provide you with an estimate (IED) with your closing documents. Closing attorneys do have escrow accounts, but they are for other purposes.
