The Consumer Financial Protection Bureau has lowered the asset-size threshold to qualify for escrow exemptions for higher-priced mortgage loans.
The CFPB lowered the threshold to $2.05 billion for 2016, down from $2.06 billion this year. The decrease was made as part of the CFPB's annual threshold adjustment under the Truth in Lending Act. The CFPB approved the final rule last week.
Creditors with assets of less than $2.05 billion, as of Dec. 31, will be exempt from mandatory establishment of escrow accounts for higher-priced loans. Creditors must also meet other conditions to qualify.
The threshold was established in 2013, as part of the Dodd-Frank reforms. The threshold adjusts each year, based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers.
