ABA Backs CFPB Proposal on Escrow Requirements for HPMLs

The American Bankers Association today welcomed the Consumer Financial Protection Bureau’s proposal to exempt certain higher-priced mortgage loans from escrow requirements under Regulation Z. “We believe the proposed rule provides clear and concise direction for covered institutions, and agree that the proposal faithfully implements” the S. 2155 regulatory reform law, ABA wrote.

As proposed, the rule would exempt HPMLs from Reg Z escrow requirements if a depository institution had assets of $10 billion or less, originated 1,000 or fewer loans secured by a first lien on a principal dwelling in the prior calendar year and met existing escrow exemption criteria.