RESPA Escrow Disclosure on Manufactured Homes

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Question:

We make loans on manufactured homes, where the borrowers lease the land on which the home rests. We do escrow if the loan qualifies as an HPML. But do we have to also send out an Initial Escrow Account Disclosure Statement? 1026.35(b)(3) makes no mention of the statement. There is a reference in 1026.35((b)(3)(i)(2)of the Commentary, mentioning RESPA and the administration of escrow accounts, yet RESPA doesn't apply to these types of manufactured home loans. What to do?

Answer:

It doesn't matter if RESPA applies or not. The Reg. Z cite you reference specifically requires that all escrow accounts established due to the loan's HPML status will be administered and disclosed under the requirements of 1024.17.

First published on BankersOnline.com 9/10/12