CFPB Announces Increase in Higher-Priced Mortgage Loans Escrow Account Asset-Size Threshold

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WASHINGTON, D.C. – January 3, 2014 – (RealEstateRama) — The Consumer Financial Protection Bureau (CFPB) today issued a final rule adjusting the asset-size threshold for certain creditors to qualify for an exemption from the requirement to establish an escrow account for a higher-priced mortgage loan under Regulation Z, which implements the Truth in Lending Act (TILA).

The Bureau established the threshold at $2 billion as part of its 2013 Escrows Final Rule, which implemented the Dodd-Frank Wall Street Reform and Consumer Protection Act. Each year, this threshold will automatically adjust based on the annual percentage increase in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers for each 12-month period ending in November.

Based on the adjustments announced today, the asset-size threshold exemption for certain creditors will increase to $2.028 billion for 2014.
As a result, these creditors with assets of $2.028 billion or less as of December 31, 2013, that also meet other requirements of Regulation Z will be exempt from the requirement to establish escrow accounts for higher-priced mortgage loans in 2014.
The adjustment to this asset-size threshold will also increase the threshold for small-creditor and balloon payment Qualified Mortgages under Regulation Z.

The rule will be effective January 1, 2014, and will apply to whether a creditor is eligible for the exemption in 2014. The final rule is available at:


The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit

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