March 14, 2013 – The CFPB on Wednesday released a preliminary list of “rural” and “underserved” counties to help lenders determine if they qualify for the small creditor exemption under its escrow requirement.
The list, which is available on the CFPB’s website, is not final. The bureau said it expects to publish the official list when it finalizes its escrow requirements under the Truth in Lending Act rule by June 1, 2013.
The escrow requirements would require certain creditors to create escrow accounts for a minimum of five years for higher-priced mortgage loans. Certain small creditors that operate predominantly in rural or underserved counties may be eligible for an exemption from these requirements, but certain criteria must be met.
Credit unions that meet the criteria for the exemption would still need to comply with the other requirements for higher-priced mortgage loans (including the new appraisal requirements).