(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.
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