Fed Issues Final, Proposed Rules on Dodd-Frank Act Escrow Provisions

摘要

The Federal Reserve Board has issued final regulations raising the interest rate threshold for escrow account requirements for jumbo mortgages to 2.5 percentage points above the average prime offer rate for comparable transactions. Escrow accounts will still be required for loans eligible for purchase by Fannie Mae and Freddie Mac when the rate exceeds the average prime offer rate by 1.5 percentage points. The regulations, which implement a provision of the Dodd-Frank Act, were published in the March 2 Federal Register and apply to covered loans for which a credit receives an application on or after April 1.