CFPB amends HPML escrow rule

On January 19, the Consumer Financial Protection Bureau (CFPB) issued their final rule amending the higher-priced mortgage loan (HPML) escrow rule. The final rule expands the exemption for establishing escrow accounts for HPMLs as required by the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

Currently, section 1026.35(b)(2)(iii) provides for a small creditor exemption to the HPML escrow requirement. As explained in the HPML Escrow Small Entity Compliance Guide, a credit union qualifies for the small creditor exemption if:

  • The credit union originated at least one covered transaction secured by a first lien on a property located in a rural or underserved area in the preceding calendar year (or in the year preceding that calendar year for applications received prior to April 1 of the current calendar year).
  • The credit union and its affiliates originated 2,000 or fewer first lien mortgage loans that were sold, assigned, or otherwise transferred to another person, in the prior calendar year;


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