The Federal Reserve published for public comment a proposed rule
that would amend Regulation Z (Truth in Lending) to implement certain
amendments to the Truth in Lending Act made by the Dodd-Frank Wall
Street Reform and Consumer Protection Act. Regulation Z currently
requires creditors to establish escrow accounts for higher-priced
mortgage loans secured by a first lien on a dwelling. The proposal would
lengthen the time for which a mandatory escrow account established for a
higher-priced mortgage loan must be maintained. In addition, the
proposal would implement the Act's disclosure requirements regarding
escrow accounts. The proposal also would exempt certain loans from the
statute's escrow requirement. Comments must be received on or before May
2, 2011. Please read Federal Register 76-11598 for the entire text.
