Escrow Account
Fannie Mae
Updated 10-31-2026
Escrow Account
A trust account that is established to hold funds allocated for the payment of a borrower's property taxes and assessments by special assessment districts, ground rents, insurance premiums, condo or homeowners' association or planned unit development association dues and similar expenses as they are received each month in accordance with the borrower's mortgage documents and until such time as they are disbursed to pay the related bills.
Fannie Mae Glossary of Terms
Fannie Mae · p. 14
Department of Veterans Affairs
Updated 10-31-2026
Escrow Account
Sometimes called an impound account, is an account set up by your mortgage servicer or mortgage holder to pay certain property-related expenses. The mortgage servicer manages the account and takes a portion of the mortgage payment to pay for taxes and homeowners insurance.
Department of Veterans Affairs Glossary of Terms
Department of Veterans Affairs · p. 1
ABA
Updated 10-31-2026
Escrow Account
an account that is held by a lender or an escrow agent, for a particular purpose defined in the escrow agreement controlling the account. When the conditions in the escrow agreement are triggered, such as when the tax bill comes due, the funds needed for that purpose are paid out of the escrow account.
American Bar Association Glossary of Real Estate Terms
ABA · p. 3
FTC
Updated 10-31-2026
Escrow Account
An account that a mortgage servicer establishes on behalf of a borrower to pay taxes, insurance premiums, or other charges when they are due. Sometimes referred to as an "impound" or "reserve" account.
FTC Real Estate Terms
FTC · pp. 6–7
HUD Housing Counselors Glossary
Updated 10-31-2026
Escrow Account
An account in which escrow funds are held to be used for specific purposes by parties carrying out a mutual transaction. While there are many uses for an escrow account, they are commonly used by lenders to set aside a portion of monthly mortgage payments needed to cover property taxes, homeowners insurance, or other fees.
HUD Housing Counselors Glossary
p. 8
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