Mortgage Loans without Escrow Sample Clauses
The 'Mortgage Loans without Escrow' clause defines the terms under which mortgage loans are originated or maintained without an escrow account for items such as taxes and insurance. In practice, this means the borrower is responsible for directly paying property taxes, homeowners insurance, and other related charges, rather than having the lender collect and disburse these payments on their behalf. This clause clarifies the borrower's obligations and ensures that both parties understand who is responsible for these payments, thereby reducing confusion and potential disputes over missed or late payments.
Mortgage Loans without Escrow. If the Servicer is not required to collect Escrow Funds on a Mortgage Loan, the Servicer shall require proof of payment of all taxes, ground rents, assessments, insurance or other charges, or use other means commonly used in the mortgage industry to ascertain that such items are paid on a timely basis.