Can a mortgage company that is holding more than enough in equity account to pay taxes on a mortgagee's property refuse to pay it? Thought that was what it is for. This particular company told these people that they weren't going to pay the taxes out of their equity "because it will make the company short on funds." (This is someone we know, not us - - we have had no problems.) Can they do that?

The people told the mortgage company to cough up a check to them for the amount to pay taxes or they'd take them to court and notify the Attorney General Consumer Affairs - - so the company did, finally.

What's the deal?