Which of the following items may require reserves to be deposited with a lender?

Homeowner's insurance often requires reserves to be deposited with a lender, particularly when taking out a mortgage loan. Lenders want to ensure that the property is adequately insured to protect their investment. By requiring reserves, the lender can include these costs in the monthly mortgage payments, which helps ensure that the insurance policy remains active and up-to-date. This practice mitigates risk for the lender because if the insured property were to suffer damage, the insurance would cover the costs, maintaining the lender’s collateral.

The other items listed do not typically require reserves to be deposited with a lender in the same way. Excise taxes, for example, are usually paid at specific intervals and may not necessitate an ongoing reserve account. Common area maintenance fees are generally the responsibility of the homeowner association and are not handled through the mortgage lender. Loan origination fees are one-time fees paid at closing for processing the loan and do not require reserves. Thus, homeowner's insurance stands out as the item that usually involves required reserves to protect both the homeowner and the lender.