Friday, February 25th, 2011
Leon Williams
Federal Reserve has Finalized Rule on Jumbo Loan Escrow Requirements
The rule raises the threshold requirements for establishing an escrow account (property taxes ad insurance) on a first-lien jumbo mortgage.
The rule essentially says that if the APR on a first-lien jumbo loan is 2.5 percentaage points (previously 1.5 percentage points) or more above the average prime offer rate, an escrow account is required.
The provision was one of the reforms outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act, three years ago. Yes, three years to finally wade through that act to come up with this.
Other proposed rules are listed here:
- A rule that effectively Continue reading: Federal Reserve has Finalized Rule on Jumbo Loan Escrow Requirements
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