The CFPB issued a final rule on Monday adjusting the asset-size threshold for certain creditors that qualify for an exemption from a Regulation Z requirement to establish an escrow account for higher-priced mortgage loans.
Creditors with assets of $2.028 billion or less as of Dec. 31 will be exempt from the requirement to establish escrow accounts for higher-priced mortgages in 2014.
The adjustment will also increase the threshold for small-creditor and balloon payment qualified mortgages under Regulation Z.
Every year, the threshold will automatically adjust based on the annual increase in the CPI for Urban Wage Earners and Clerical Workers for each one-year period ending in November.
Additionally, the CFPB issued a final rule adjusting the asset-size exemption threshold for financial institutions under the Home Mortgage Disclosure Act to $43 million. Institutions with less than $43 million in assets are exempt from collecting HMDA data in 2014.
HMDA and the CFPB’s Regulation C, which implements HMDA, require most lenders in metro areas to collect, report and disclose mortgage loan data related to originations, applications and purchases.
The data is used to help determine whether banks, savings associations and credit unions are serving the housing needs of their communities and to help identify possible discriminatory lending practices.