The CFPB recently released a compliance guide on the TILA Escrow Rule as part of its ongoing effort to provide easy-to-use information about the upcoming mortgage rule changes.
The escrow rule was finalized in January and takes effect June 1. The rule increases the time lenders must maintain an escrow account on a higher-priced mortgage secured by a first lien from one year to five years.
Institutions that operate predominantly in rural or underserved areas, originate fewer than 500 first-lien covered loans annually, and have less than $2 billion in assets may be eligible for an exemption. The guide covers those requirements and additional exemptions in a plain language and FAQ format.
Link to Guide: TILA Escrow Rule Small Entity Compliance Guide