CFPB Proposes Exemption from Escrow Requirements for High-Priced Mortgages

The Consumer Financial Protection Bureau today proposed to exempt certain higher-priced mortgage loans from a requirement under Regulation Z to establish escrow accounts for those loans, as required by the S. 2155 regulatory reform law.

Under the proposal, HPMLs made by an insured depository institution or credit union would be exempt from the Reg Z escrow requirement if the institution had assets of $10 billion or less, if the institution and its affiliates originated 1,000 or fewer loans secured by a first lien on a principal dwelling during the preceding calendar year and if certain other criteria are met.