Understanding Impound Taxes and Insurance Months of Reserves

Print Friendly and PDF

The Impound Taxes and Insurance, Months of Reserves has been updated to default to 3 month of reserves with the following (33) states for:

  • CT, TN, MI, GA, SC, IL, LA, AL, AK, AR, DE, IN, IA, KS, ME, MA, MS, MO, MT, NE, NV, NH, NY, NC, ND, OK, PA, RI, SD, VT, VA, WI, WY
    • Property Tax/Months of Reserves
    • Homeowner Insurance/Months of Reserves
    • Flood Insurance/Months of Reserves

The Impound Taxes and Insurance, Months of Reserves for the remaining (17) states, listed below, will based on the following:

  • AZ, CA, CO, FL, HI, ID, NM, OR, TX, UT, WA, KY, NJ, OH, WV, MD, MN
    • Property Tax/Months of Reserves = date at which the loan was closed determines the months of reserves
    • Homeowner Insurance/Months of Reserves = 3 (default)
    • Flood Insurance/Months of Reserves = 3 (default)


The enhancement will be reflected within the Loan Details page under Housing Expenses Break Down – New Taxes & Insurance / HOA CalculatorMonths of Reserves.

This can also be seen with the Loan Estimate (LE) under section G. of the Closing Cost Details page.


Please sign in to leave a comment.