CFPB Issues Rule On Escrow Exemptions For High-Priced Mortgage Loans

CFPB building. Photo credit: Getty Images/JHVEPhoto

The Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rulemaking (NPRM) that would amend Regulation Z to provide a new exemption available to certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs)

Eric C. Peck
 & 
July 2, 2020

The Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rulemaking (NPRM) that would amend Regulation Z to provide a new exemption available to certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs). In issuing the NPRM, the CFPB commenced its last mandatory rulemaking to implement the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA).

HPMLs are closed-end consumer credit transactions secured by the consumer’s principal dwelling with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction by specific amounts as of the date the interest rate is set. For the most part, first-lien HPMLs must have escrow accounts.

Click here to read about the CFPB's latest rule on escrow exemptions.

This article originally appeared in the National Mortgage Professional print magazine.

Eric C. Peck is senior editor of National Mortgage Professional magazine and editor-in-chief of the National Mortgage Professional Magazine website.

Eric C. Peck is senior editor of National Mortgage Professional magazine and editor-in-chief of the National Mortgage Professional Magazine website.

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CFPB Issues Rule On Escrow Exemptions For High-Priced Mortgage Loans
Compliance

CFPB Issues Rule On Escrow Exemptions For High-Priced Mortgage Loans

July 2, 2020
by
Eric C. Peck

The Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rulemaking (NPRM) that would amend Regulation Z to provide a new exemption available to certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs). In issuing the NPRM, the CFPB commenced its last mandatory rulemaking to implement the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA).

HPMLs are closed-end consumer credit transactions secured by the consumer’s principal dwelling with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction by specific amounts as of the date the interest rate is set. For the most part, first-lien HPMLs must have escrow accounts.

Click here to read about the CFPB's latest rule on escrow exemptions.

Written by 
Eric C. Peck

Eric C. Peck is senior editor of National Mortgage Professional magazine and editor-in-chief of the National Mortgage Professional Magazine website.

ericp@ambizmedia.com

These articles are powered by National Mortgage Professional

The Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rulemaking (NPRM) that would amend Regulation Z to provide a new exemption available to certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs). In issuing the NPRM, the CFPB commenced its last mandatory rulemaking to implement the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA).

HPMLs are closed-end consumer credit transactions secured by the consumer’s principal dwelling with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction by specific amounts as of the date the interest rate is set. For the most part, first-lien HPMLs must have escrow accounts.

Click here to read about the CFPB's latest rule on escrow exemptions.

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