The CFPB amends its Escrow Requirements Under the Truth in Lending Act Rule
On Thursday, May 16, 2013, the Consumer Financial Protection Bureau (the "CFPB") adopted clarifying and technical amendments to its Escrow Requirements Under the Truth in Lending Act final rule issued on January 10, 2013. The amendments lengthen the time for which a mandatory escrow account established for a higher-priced mortgage loan must be maintained. The final rule established an exemption from the escrow requirement for certain creditors that operate predominantly in “rural” or “underserved” areas. The amendments also clarify the determination method for the “rural” and “underserved” designations and keep in place certain existing protections for higher-priced mortgage loans until other similar provisions take effect in January 2014.
Read the CFPB press release