O.D.7: Operational Escrow Accounts
Refers to deposits from counterparties that are operational deposits as defined in the LRM Standards in the form of operational escrow deposits. Operational escrow deposits refers to an account that a designated third party (e.g., a servicer) establishes or controls on behalf of another party to process transactions such as the payment of taxes, insurance premiums (including flood insurance), or other charges with respect to a loan or transaction, including charges that the borrower and servicer have voluntarily agreed that the servicer should collect and pay.