Final answer:
RESPA mandates lenders to conduct an escrow account analysis annually to ensure proper funding for expenses like taxes and insurance.
Step-by-step explanation:
The Real Estate Settlement Procedures Act (RESPA) requires lenders to perform an escrow account analysis at least once per year. This analysis is done to ensure that the escrow portion of a borrower's monthly mortgage payment, which is used to pay expenses such as property taxes and insurance, is adequate to cover those expenses without being excessively large. If the analysis reveals a surplus or shortfall, the lender must take action to correct the situation.