The Consumer Financial Protection Bureau (“CFPB”) has issued the much-anticipated final rules that implement residential mortgage reforms of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). In a series of reports, PYA is analyzing the effect of each of these new rules, this week looking at the impact of the final rule that amends escrow requirements under the Truth in Lending Act (“TILA”) (Regulation Z).
The final rule, which takes effect June 1, 2013, requires creditors to establish escrow accounts for certain mortgage transactions to help ensure that consumers set aside funds to pay property taxes, premiums for homeowners insurance, and other mortgage-related insurance required by the creditor.
The final rule consists of three elements:
View the final rule amending escrow requirements under TILA here. To discuss the impact of the new mortgage rules on your institution, please contact the expert listed below at PYA, (800) 270-9629.
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