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Cancellation of Escrow for HPMLs

Answered by: 
John Burnett

Question: 
Some of the loans we make are HPMLs. A few customers that were required to escrow for the one year minimum are now requesting cancellation of their escrow. However, we are receiving mixed opinions as to whether or not, with the new changes, that is an option. I would think if they were told 12 months when that was the Reg, that they should not have to maintain the escrow for another 48 months. Can you please clarify?
Answer: 

The "new" escrow rules -- which have been in effective for almost six months now -- apply to loans for which you received applications on or after June 1, 2013. Loans on your books that had a one-year escrow minimum term aren't affected by the five-year requirement.

First published on 02/17/2014

Filed under: 
Compliance
Filed under compliance as: 
Escrow

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