In the February 4, 2019, issue of the Federal Register (84 FR 1356, click here) the CFPB revised comment 35(b)(2)(iii)-1.iii.E. of the Official Interpretations to §1026.35(b)(2)(iii)(C) of Regulation Z to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan. For calendar year 2019, the asset-size threshold is increased to $2.167 billion from $2.112 billion. Therefore, a creditor that together with the assets of its affiliates that regularly extended first-lien covered transactions during calendar year 2018 has total assets of less than $2.167 billion on December 31, 2018, is exempt, if the other requirements of §1026.35(b)(2)(iii) are also met, from establishing escrow accounts for higher-priced mortgage loans consummated in 2019, and for higher-priced mortgage loans consummated in 2020 for which the applications were received before April 1 of 2020.
Full Memorandum
