All accounts/escrow should be held by a trust third party
Full Members and Up will be held by 3rd party escrow. Junior and Member Accounts will be held by escrow if the loanee wishes, but usually the escrow's fee is higher than the maximum loan. If they want to opt for this that's their option and will be honored.
There is a few very trusted escrow services on here that offer free service so all accounts should be held in escrow.