CFPB Exempts Certain Depository Institutions and Credit Unions from Higher-Priced Mortgage Loan Escrow Account Requirement
The CFPB adopted rules adding an exemption to the escrow account requirement for certain depository institutions and credit unions making higher-priced mortgage loans. Per the rule adoption, an insured depository institution or credit union is not required to establish an escrow account in connection with a higher-priced mortgage loan (HPML) if:
- The HPML is secured a 1st lien on the borrower’s principal dwelling;
- The depository institution or credit union has assets of $10 billion or less;
- The depository institution or credit union, and its affiliates, originated 1,000 or fewer loans secured by a 1st lien on a principal dwelling during the preceding calendar year; and
- Certain existing HPML escrow exemption criteria are met.
The rule adoption becomes effective on the date the rule adoption is published in the Federal Register (on or around February 19, 2021).
Click to view the CFPB Rule Adoption – HPML Escrow Exemption: https://www.tenaco.com/wp-content/uploads/2021/01/CFPB-Rule-Adoption-Rule-Text.pdf
