When you’re required to have Private Mortgage Insurance on your loan, the lender will require the property taxes and home owner’s insurance to be collected monthly as part of the total mortgage payment. The loan servicer will make the bi-annual property tax and annual home owner’s insurance payments on the borrower’s behalf when due.
In order to start this process, you will have to set up an Escrow/Impound Account (both terms for the same exact thing in California) with the new lender/servicer so that you can pay monthly property taxes and home owner’s insurance as part of the total monthly mortgage payments.