An impound escrow account is set up for a real estate mortgage loan to pay certain property-related expenses such as private mortgage insurance, homeowner’s insurance and property taxes. Frequently, lenders require these impounds to be paid with the borrower’s monthly loan payment. Often, loan regulations require impounds to be set up for a mortgage loan collateralized by a personal residence. Escrow accounts are far from simple as they may be required or restricted by an array of state and federal laws and regulations. Generally, there is a legal instrument that places a lien on the homeowner’s property, such as a deed of trust or mortgage, that requires reserves or impounds for property taxes and insurance.