The federal law concerning mortgage escrow accounts can be pretty lenient.The government allows the lender to have the right to decide if he wants the person borrowing the money to have an escrow account or not. FHA loans require you to have an escrow account. However the VA loans do not necessarily have to have an escrow account. Conventional mortgage loans are usually given by banks, credit
. unions or savings banks.. It is up to them if they want their borrowers to have an escrow account. The banks may make that determination according to the amount of down payment that the borrower made and also what their past payment record was like. Each bank is different.
