How is everyone treating HPML's and complying with the IL Mortgage Escrow Act. Going forward HPML's are required to have escrows for at least 5 years and IL states the borrower can cancel escrows once they hit 65% LTV (and this must be disclosed at loan closing and when the loan hits 65%). I know the federal law preempts the state law so that regardless of the LTV the escrow must be maintained for 5 years at a minimum but how do we disclose all of this??

Any help would be appreciated. And for what it's worth we are a laser pro bank so if there is something in there that you are using please let me know.

IBA recommended referencing the Federal law and it's preemption in your Escrow Notice.

We saw that but didn't know exactly how other banks were doing that or what wording they were using or if they were doing something different altogether.

Found your thread as I am also needing the lenders here to get the right forms in front of borrowers. Our lending software application can generate the 2 forms (initial account statement w/ 1 year's amount & disbursement details, and a 3-page listing of the IL Mortgage Escrow Account Act where we say "No, your escrow account will NOT be an interest-bearing time deposit"). Neither one of them is really a NOTICE, FeFiFoFum. Am I missing something here, that if Federal regs pre-empt the IL law, why use the IL form at all, esp. since the the HPML rules for escrow and options for cancelling escrow are the ones we must ultimately follow??

I know that this is old, but I was wondering, CountryBanker, what did you decide to do with your IL Mortgage Escrow Account Act forms? If preemption still applies (does it) must we put the IL Mortgage Escrow Account Act information in the files (if at a National Bank)?

I am wondering the same question? Do we need the IL Mortgage Disclosure when we have an HPML and 5 years is required regardless of LTV?

Bump...
I'd like to revive this old thread. I too am trying to find an answer as to whether, as a National Bank, we are required to provide the disclosure for the Illinois Mortgage Escrow Account Act.
I assume that the 34.4 "Applicability of State Law" preemption applies here, but I'm hoping someone can point me to a definitive answer.