CFPB Corrects Regulation Z Commentary Regarding Higher-Priced Mortgage Loan Escrow Exemption

The CFPB recently issued technical corrections to its Official Interpretations to Regulation Z (Commentary) relating to the recent higher-priced mortgage loan escrow exemption final rule. The corrections became effective on June 3, 2021.

For context, the Higher-Priced Mortgage Loan Escrow Exemption (Regulation Z) exempts certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans.

The corrections address two comments in the Commentary. The first cures a scrivener error by adding Paragraph 35(b)(2)(vi)(B) to the Commentary, which was included in the higher-priced mortgage loan escrow exemption final rule, but was not incorporated into the Code of Federal Regulations due to an omission in the amendatory instruction.  The second revises Paragraph 43(f)(1)(vi), a comment that the CFPB included in the Code of Federal Regulations, but that inadvertently did not appear in a subsequently effective final rule.  Both paragraphs are printed in full in the Federal Register publication regarding these corrections.