the rates on our mobile home loans put them in the higher-price loan category so we know we have to escrow for homeowners' insurance and RE taxes if situated on its own lot. Do we have to escrow for the monthly lot rental fee when the home is located in a park?

I see nothing in the HPML requirements that would require that. On top of that, you state it's a monthly fee....would seem pretty redundant IMO to escrow for that.

That's what I was thinking but we use a third-party for some loans and they are setting up escrow for the lot rental fee.

(3) Escrows--(i) Failure to escrow for property taxes and insurance. Except as provided in paragraph (b)(3)(ii) of this section, a creditor may not extend a loan secured by a first lien on a principal dwelling unless an escrow account is established before consummation for payment of property taxes and premiums for mortgage-related insurance required by the creditor, such as insurance against loss of or damage to property, or against liability arising out of the ownership or use of the property, or insurance protecting the creditor against the consumer's default or other credit loss.

I see nothing there that would make you escrow for the lot rental fee. It wouldn't keep you from escrowing for it if you wanted to.

Review the Commentary to 226.35. It's not just RE taxes you have to escrow for. You have to escrow for any taxes assesed against the MH.


Section 226.35(b)(3) applies to principal dwellings, including structures that are classified as personal property under state law.