Tax and Insurance Escrow

An account required by a mortgage lender to fund annual property tax assessments and hazard insurance premiums for the mortgaged property. Funded through monthly contributions by the mortgagor. See Piti.
Example: When the mortgage loan was originated, a tax and insurance escrow was set up by the lender to pay tax and insurance expenses. The borrower's monthly mortgage payment was increased by an amount necessary to accumulate a balance in the account sufficient to cover these expenses.