Question

A creditor or servicer may cancel an escrow account only upon the earlier of:

(1) The borrower's satisfaction of all obligations secured by the mortgage.
(2) The borrower's written request for cancellation.
(3) Both (1) and (2).
(4) None of the above.

Answer 1

A creditor or servicer may cancel an escrow account only when the borrower satisfies all mortgage obligations and makes a written request for cancellation.

Step-by-step explanation:

According to the information provided, a creditor or servicer may cancel an escrow account only upon the earlier of:

1. The borrower's satisfaction of all obligations secured by the mortgage.
2. The borrower's written request for cancellation.
3. Both (1) and (2).
4. None of the above.

Therefore, the correct answer is option (3) - both the borrower's satisfaction of all obligations secured by the mortgage and the borrower's written request for cancellation.