If we made sure that more than 50% of our first lien, disclosable, closed-end, dwelling secured loans are in rural or underserved counties (I checked the list from CFPB), and our numbers are lower than 500 loans, our assets are less than $500 billion, we are not going to sell our loan and we don’t escrow…can we now make a loan that would have previously been a HPML without having to set up escrows or do we have to wait until 01-14-14 to do so? I’ve managed to confuse myself and can’t seen to find the answer.
The HPML escrow amendments were effective June 1, 2013, so if you qualify for the exemption you may use it now. You’ve addressed 1026.35(b)(2)(iii)(A)-(C) in your question. Don’t forget to ensure you meet 1026.35(b)(2)(iii)(D), as well, which adds:
Neither the creditor nor its affiliate maintains an escrow account of the type described in paragraph (b)(1) of this section for any extension of consumer credit secured by real property or a dwelling that the creditor or its affiliate currently services, other than:
(1) Escrow accounts established for first-lien higher-priced mortgage loans on or after April 1, 2010, and before June 1, 2013; or
(2) Escrow accounts established after consummation as an accommodation to distressed consumers to assist such consumers in avoiding default or foreclosure.