Escrow
Recent Activity
Regulation Z Proposed Rule – Escrow Requirements
The Federal Reserve Board has published a proposed rule to amend Regulation Z. The proposed rule would implement certain requirements for mortgage loans from the Dodd-Frank Wall Street Reform and Consumer Protection Act in the following areas:
- Lengthen the time for which a mandatory escrow account must be maintained for a "higher priced mortgage loan".
- Implement new disclosure requirements regarding escrow accounts.
- Exempt certain loans from the escrow requirements (e.g., loans extended by creditors that operate predominantly in rural or underserved areas, originate a limited number of mortgage loans, and do not maintain escrow accounts for any mortgage loans they service).
The comment period ends on April 30, 2011.
For further information, follow this link to ComplianceHeadquarters
Regulation Z Final Rule – Escrow Requirements
The Federal Reserve Board has published a final rule that amends Regulation Z and revises the escrow account requirements for higher-priced, first-lien "jumbo" mortgage loans. “Jumbo” loans are loans exceeding the conforming loan-size limit by purchase by Freddie Mac. Implementing a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the proposed rule would increase the annual percentage rate threshold used to determine whether the lender is required to set up an escrow account for property taxes and insurance.
- Lengthen the time for which a mandatory escrow account must be maintained for a "higher priced mortgage loan".
- Implement new disclosure requirements regarding escrow accounts.
- Exempt certain loans from the escrow requirements (e.g., loans extended by creditors that operate predominantly in rural or underserved areas, originate a limited number of mortgage loans, and do not maintain escrow accounts for any mortgage loans they service).
This final rule is effective on April 1, 2011.
For further information, follow this link to ComplianceHeadquarters
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Historical Activity
What: The Federal Reserve Board (FRB) published final regulations to toughen Reg Z restrictions on mortgage lenders.
- Establishes a new category of loans—higher-priced mortgage loans
- Establishes escrow requirements for higher-priced mortgage loans
Effective: Escrow requirements on higher-priced mortgage loans (HPML):
- April 1, 2010, for residential real property
- October 1, 2010, for manufactured homes, trailers, boats, etc.
Solutions:
On demand webinar: Understanding Escrow and Changes
On Demand | On CD
ESCROW Consumer Educational Brochure – A new brochure that helps explain ESCROW to your consumers.
Click here for more information or to order the ESCROW Educational Brochure.
Escrow Tool Kit includes the following components:
- “Understanding Escrow and Changes” recorded webinar
- PRINGLE® Policies & Procedures documentation
- Escrow Implementation Guide
- Borrower Education Brochure on understanding escrow
Click Here for More information or to order the ESCROW Toolkit
View our New Escrow Requirements Under Regulation Z article now.
