Friday, April 15, 2011
Additional Truth in Lending Act Change Effective April 1, 2011 for Jumbo Mortgages
The Federal Reserve Board recently amended TILA to provide a separate, higher rate threshold for determining whether a "jumbo" loan is subject to the same escrow requirements as non-jumbo Higher Priced Mortgage Loans (HPMLs). Effective April 1, 2011, if a jumbo loan's APR exceeds the average prime offer rate (APOR) by 2.5 or more percentage points on the date the interest rate is locate, then TILA requires the establishment of an escrow account for the payment of property taxes and any creditor-required premium for mortgage-related insurance, prior to consummation. More information: click
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