Is it true that creditors with assets of $2.060 billion or less as of 12/31/2014 are exempt from establishing an escrow account for an HPML??

https://www.federalregister.gov/articles...ption-threshold

Well, they may be. But that is only one criterion of four that must be met in order to be qualified for the exemption. Review Regulation Z section 1026.35(b)(2)(iii), paragraphs (A), (B), (C) and (D). The $2 billion figure in para. (C) was increased to $2.028 billion for 2014 and $2.06 billion for 2015. But you have to meet all four criteria to qualify.

Wishful thinking....we don't qualify

John: We are under the $2 billion figure, more than 50% of our loans were made in rural/underserved counties. We do fewer than 500 mortgage loans per year. The 4th one of is the one that has us stumped. Because we didn't understand the regulation entirely we continuted to escrow loans after 2014 because we thought we had to as some of our loans were in counties that were not rural/underserved. But now reading the regulation it states if more than 50% of your loans, which ours are.

So do we not qualify now since we have made loans since 2014 that we have escrowed on because we thought we needed to?

That's how I would read it, Snowgirl.

I would agree with John. Because of your continued escrowing after 1/1/14 you do not meet the 4 prong test for the exemption.

So I have it correctly - we have to meet all four of the prongs to qualify for the exemption?

Yes the 4 prong test is tied together by "and", not "either or".

Which was the point made in the January post above.