An escrow account is an arrangement in which Midwest Loan Services collects funds from a borrower and disburses the payment due for taxes and/or insurance policies. A portion of your monthly payment (escrow portion) will be applied to your escrow account based on projected amounts needed to pay taxes and/or insurance. As an insurance bill comes due, your insurance company sends the bill to Midwest Loan Services for payment. We utilize a tax service that provides us with the amounts due for your property taxes.