EscrowrnRequirements under the Truth in Lending Act (TILA) rule (EscrowsrnRule) which took effect on June 1, 2013. The rulernrequires certain creditors to create escrow accounts for a minimumrnof 5 years for higher-priced mortgage loans (HPMLs). Exemptionsrnexist for certain small creditors that operate predominantly inrnrural or underserved counties. </p</li</ul<ul<li

The Ability to Repay andrnQualified Mortgage Standards under Under TILA (ATR Rule), effectivernJanuary 10, 2014, disqualifies mortgages with balloon payments fromrnthe definition of qualified mortgages (QM). This rule also exemptsrnsome small creditors under the rural and underserved provision. </p</li<li

A temporary exemptionrnwill exist in the balloon payment rule for certain high-costrnmortgages under High-Cost Mortgage and Homeownership CounselingrnAmendments to TILA which go into effect on January 10, 2014. </p</li<li

Certain HPMLs will bernexempt from new second appraisal requirements if they are originatedrnin rural counties under the interagency Appraisals for Higher-PricedrnMortgage Loans rule which goes into effect on January 18, 2014.rnBecause this rule does not apply to underserved counties, CPFB hasrnpublished a second list including only “rural” designees. </p</li</ul

The memo from CFPB saidrnthe agency had received considerable feedback on the definitions forrn”rural” and “underserved” and it is also aware that thernstatus of some counties has changed between the 2013 and 2014 list. The agency intends to consider refining these definitions over thernnext two years and has posted several additional exemptions to thernrules for those counties who have lost status with the new list. Thernlists as well as additional exemptions are available here.rn

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