Feb. 4, 2013 – NAFCU members can gain a better understanding of how to qualify for the small creditor exemption from the CFPB’s new escrow requirements for higher-priced mortgage loans by reading the February issue of the NAFCU Compliance Monitor newsletter.
The issue’s article (member login is required) on the new escrow requirements for higher-priced mortgage loans goes into the specifics about the 4-part test to qualify for the small creditor exemption. Credit unions that qualify for the small creditor exemption would no longer be required to escrow for higher-priced mortgage loans after June 1, 2013.
The escrow requirements only apply to a subset of higher-priced mortgage loans, namely, first liens on a member’s principal dwelling. Credit unions that do not make higher-priced mortgage loans will not be impacted by the changes in the escrow requirements.
In addition, the newsletter includes a compliance forum section that highlights some recent queries fielded by NAFCU’s compliance team, and a roundup of notable NAFCU Compliance Blog posts.
Speaking of queries, the NAFCU compliance team reported Friday that compliance inquiries in January were up 40 percent over December – a direct impact of the CFPB’s new mortgage rules.
The February issue is accessible now online. Member login is required.