The CFPB has issued a compliance guide for the escrow rule finalized in January. The rule increases to five years the minimum time for which lenders must maintain an escrow account on a “higher-priced” mortgage secured by a first lien.
Institutions serving rural and underserved areas, as well as institutions with less than $2 billion in assets and that originate fewer than 500 first-lien covered loans annually, may qualify for an exemption from the rule, which takes effect June 1. The guide covers some additional exemptions from the rule.
Read the guide.