Federal Reserve Bank of San Francisco

Final Rule to Clarify 2013 Escrow Rule and Extend Protections for Higher-Priced Mortgage Loans (HPMLs)

Author(s): Federal Reserve Bank of San Francisco

May 24, 2013

On May 16, 2013, the Consumer Financial Protection Bureau (CFPB) issued a final rule to clarify and make technical amendments to the Escrow Requirements under the Truth in Lending Act (Regulation Z) (Escrow Rule). The Escrow Rule, which goes into effect on June 1, 2013, lengthens the mandatory escrow account period for HPMLs from one to five years and establishes an exemption from the escrow requirements for certain creditors that operate predominately in “rural” and “underserved” areas.

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