CFPB begins implementing escrow exemption

The Consumer Financial Protection Bureau issued a proposed rule to implement ICBA-supported relief from mandatory escrow requirements for higher-priced mortgage loans.

Under the proposal, institutions with $10 billion or less in assets that originate 1,000 or fewer mortgage loans secured by a first lien on a principal dwelling will not be required to establish escrow accounts for loans originated and retained in portfolio.

The proposal to amend Regulation Z begins the last CFPB rulemaking required by the ICBA-advocated S. 2155 regulatory relief law.