A loan on property of 25 acres or more is exempt from RESPA. But..... if it is a HPML do we have to escrow for taxes and insurance if loan is consumer purpose and principal dwelling???

Yes.

I need to prove this in writing from an official source. Do you know where I can find this? I have the reg 226.35(3)(ii) which states the only exemptions to escrowing are shares in coop and certain condos. Does not list property of 25 acres or more. I guess that's my answer...

The definition of a HPML does not reference the loan having to be subject to RESPA. It simply states For purposes of this section, a higher-priced mortgage loan is a consumer credit transaction secured by the consumer's principal dwelling . .

The Commentary to 226.35(b)(3) is as follows:

2. Administration of escrow accounts. Section 226.35(b)(3) requires creditors to establish before the consummation of a loan secured by a first lien on a principal dwelling an escrow account for payment of property taxes and premiums for mortgage-related insurance required by creditor. Section 6 of RESPA, 12 U.S.C. 2605, and Regulation X address how escrow accounts must be administered.


226.35 also defines an escrow account:

(iv) Definition of escrow account. For purposes of this section, ``escrow account'' shall have the same meaning as in 24 CFR 3500.17(b) as amended.


But no where does it reference the loan has to be subject to RESPA in order to meet the definition of a HPML.

not that the above reply needs it...but I agree anyway!