35(b)(1) Requirement to escrow for property taxes and insurance.
ADMINISTRATION OF ESCROW ACCOUNTS.
Section 1026.35(b)(1) requires creditors to establish an escrow account for payment of property taxes and premiums for mortgage-related insurance required by the creditor before the consummation of a higher-priced mortgage loan secured by a first lien on a principal dwelling.
See this link for exemptions:
https://www.consumerfinance.gov/eregulations/1026-35/2013-30108_20150718#1026-35-b