CFPB Escrow Requirements Become Effective June 1, 2013


(OnlineEd®) – The Consumer Financial Protection Bureau’s (“CFPB”) Escrow Requirements under the Truth in Lending Act rule will go into effect on June 1, 2013. The rule, known as Escrows Rule, requires certain creditors to create escrow accounts for a minimum of 5 years for higher-priced mortgage loans, but exempts higher-priced mortgage loans made by certain small creditors operating predominantly in rural or underserved counties. For purposes of the Escrows Rule, the CFPB defines rural counties by using the USDA Economic Research Service’s urban influence codes. Underserved counties are defined by data collected under the Home Mortgage Disclosure Act.

You can download a preliminary list based on the proposed revisions here.  A final list will be available before June 1, 2013.


If you have any questions about the list of counties or the new mortgage rules, please contact us at or (202) 435-7700.

If you have questions or would like to learn more about OnlineEd®, please visit If you would like information about OnlineEd’s® Compliance Management System solution developed for the mortgage industry, please visit or telephone (866) 519-9597.

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About Jeff Sorg

Jeff Sorg is a co-founder of OnlineEd®, an online real estate, mortgage broker, and vocational school founded in 1997, where he also serves as Chief Executive Officer, and School Director. Sorg holds vocational and post-secondary school instructor licenses in several states and has authored numerous real estate continuing education and pre-licensing courses and has been awarded the International Distance Education Certification Center's CDEi Designation for distance education. Memberships include ARELLO (Association of Real Estate License Law Officials), the National Association of REALTORS®, Oregon Association of REALTORS®, and Portland Metro Association of REALTORS®. Awards and service include REALTOR® Emeritus in the National Association, Life Member award in Portland Metro Association and Chairperson of the Oregon Real Estate Forms Committee. OnlineEd® provides real estate, mortgage broker, insurance, and contractor pre-license, post-license, continuing education, career enhancement, and professional development and designation courses over the Internet.