Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Small Creditor Escrow Relief Previewed By CFPB
WASHINGTON (3/14/13)--A preliminary list of the counties in which small creditors will be exempt from pending escrow requirements has been released by the Consumer Financial Protection Bureau.

The CFPB's escrow rule, issued in January, generally extends the required duration of a mortgage loan escrow account to five years. The current minimum duration is one year. Lenders that work in rural or underserved areas will be exempt from the escrow changes, provided they meet certain other criteria, the CFPB said.

The preliminary list of CFPB-approved rural and underserved areas covers counties in 46 states and Puerto Rico. A finalized list will be released alongside some technical amendments to the escrow rule before June 1, the agency said. The escrow rule is also expected to be finalized at that time.

The CFPB said it will define rural counties by using the U.S. Department of Agriculture Economic Research Service's urban influence codes. Underserved counties are defined by reference to data collected under the Home Mortgage Disclosure Act, the agency said. Some counties' status may change from year to year, the CFPB added.

The Credit Union National Association has developed an escrow account compliance chart and other resources to help credit unions comply with this and other CFPB mortgage rules. The chart format is designed to help credit unions find the specific information they are looking for quickly. The chart covers the basics of the new rule and more detailed information, including:

  • Effective dates;
  • Exemptions and exceptions;
  • Significant definitions; and
  • What the new rule will change.
More comprehensive compliance summaries with interpretive explanations of the escrow changes are also in the works.

For the CFPB release and the CUNA chart, use the resource links.
RSS print
News Now LiveWire
.@USATODAY print edition features #creditunion membership march to #100mm. Zoom in on lower left hand corner #NewsNow http://t.co/Xv8fyX7ces
18 minutes ago
No special assessment for ASI member #creditunions in 2014. See #NewsNow http://t.co/NwL9eJwbiQ
31 minutes ago
.@MICreditUnions is recruiting member #creditunions to participate in a campaign to help state residents thrive in retirement.
40 minutes ago
#NewsNow: How @MyCUgov makes financial education resources available (Pt1 in a 2-Pt series) http://t.co/XzvD5sj8Am
44 minutes ago
Consumer spending, income slip in July #Market #NewsNow http://t.co/GHFviIePLS
2 hours ago