Do you have any idea the infrastructure and cost it takes to pay taxes to thousands of taxing authorities for hundreds of thousands of borrowers?
Yes, I do. That still doesn’t make me happy that they don’t pay interest on something that’s forced on you. If you don’t have 20% down payment even with great credit and qualifying income you have to pay into an escrow account.
Sadly, most people don’t know that any overage must be refunded within 45 days if it’s requested in writing. And the banks don’t inform people of this either.
There are people who’ve had overages for 30 years and when they pay off the loan they get it back. Usually a pretty good sum that never paid a penny in interest. They should at least be made to pay interest on any overage.
They make it profitable or they would not do it.
Lesson is, as several freepers have pointed out, PAY FOR INSURANCE AND PROPERTY TAXES YOURSELF, do not have the mortgage companies do it....
I have always paid for these fees myself, however, it never fails, my current lender, every year, claims that I am not paying my homeowners insurance, they conveniently lose my docs for this, and then attempt to charge me some massively INFLATED insurance premium...