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If at any time during the time that you have a balance on a mortgage it is found that you do not have insurance to cover the rebuild (minimum) cost of buildings or structures that sit on the property then the lender has the right and is obligated to provide insurance on your behalf. They are also legally correct in billing you for the cost of the insurance.
As far as paying your taxes and starting an escrow account on your behalf, this is something that is determined between the terms of their mortgage contract and you. If on the other hand this is not stipulated in the contract then they do have the legal right to do this.
On the other hand, if you have ever fallen behind on your property taxes and they have done this then you should count it as a favor. The interest that accrues on delinquent taxes is far more than the monies that the bank would withhold monthly to keep your taxes current for you.
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