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4330.1 REV-5 CHAPTER 2. HUD ESCROW AND MORTGAGE …

REV-5 _____ CHAPTER 2. HUD ESCROW AND MORTGAGE INSURANCE PREMIUM (MIP) 2-1 ESCROW ACCOUNT - GENERAL (24 CFR ). Mortgagees must establish ESCROW accounts and require that mortgagors make monthly payments to ensure that funds will be available to pay taxes and insurance premiums when they come due. A. ESCROW Authority. The basic authority to collect funds for ESCROW items is provided when the mortgagor signs the security instrument at closing.

insured under the Mutual Mortgage Insurance Fund, i.e., National Housing Act Section 203(b), 203(h), 203(i) and 203(n). This includes mortgages insured under Section 203(b) pursuant to Sections 244 (coinsurance), 245 (graduated payment mortgages and growing equity mortgages) and 251 (adjustable rate mortgages). (b)Loans Excluded From Risk-based

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