An asset-size adjustment by the Consumer Financial Protection Bureau (CFPB) for lenders exempt from escrow requirements for higher-priced loans was published in the Federal Register Monday – the last of several CFPB notices that had been announced weeks ago but held up from publication in the F.R. due to the recent federal government shut-down.
Approved by CFPB in December, the adjustment provides that lenders with less than $2.167 billion in assets (including assets of certain affiliates) as of Dec. 31, 2018, are exempt from the Truth in Lending Act (TILA, Regulation Z) requirement to establish escrow accounts for higher-priced loans. The threshold also applies with respect to small-creditor portfolio and balloon-payment qualified mortgages under Regulation Z.
The adjustment, based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), has an applicability date of Jan. 1, 2019.