Can lender refuse escrow removal when there is no reason for it?

[Turgut Oz]

I have a conventional 30 yr mortgage for 3 years. I have always paid on time and recently canceled PMI so there is no PMI right now. I have a LTV <0.8. The lender said the investor (in my loan) has refused to remove my escrow account. But, there is no reason why lender insists on that when I have above parameters. The lender does not provide any reason as to why lender refuses it or what factor prevents them from doing so. I am in TX. I wrote a complaint on CFPB. What are my options?

[Chris Seveney]

Quote from @Turgut Oz:

I have a conventional 30 yr mortgage for 3 years. I have always paid on time and recently canceled PMI so there is no PMI right now. I have a LTV <0.8. The lender said the investor (in my loan) has refused to remove my escrow account. But, there is no reason why lender insists on that when I have above parameters. The lender does not provide any reason as to why lender refuses it or what factor prevents them from doing so. I am in TX. I wrote a complaint on CFPB. What are my options?

PMI and Escrow are two totally different things. Most loan documents require the property to be escrowed for taxes and insurance as that protects the lender to make sure they are being paid. The default rates on taxes and insurance I would bet are 10 fold compared to loans who have escrow because people live paycheck to paycheck and then when a big bill comes due they cannot pay it.

I would guess your loan documents require it

BTW why are you putting up a big fuss on having the servicer hold taxes and insurance escrow?