What are the new laws for escrow accounts for higher-priced loans?
Except as provided in paragraph below, a creditor may not extend a loan secured by a first lien on a principal dwelling unless an escrow account is established before consummation for payment of property taxes and premiums for mortgage-related insurance required by the creditor, such as insurance against loss of or damage to property, or against liability arising out of the ownership or use of the property, or insurance protecting the creditor against the consumer’s default or other credit loss. Escrow accounts need not be established for loans secured by shares in a cooperative and insurance premiums need not be included in escrow accounts for loans secured by condominium units, where the condominium association has an obligation to the condominium unit owners to maintain a master policy insuring condominium units. A creditor or servicer may permit a consumer to cancel the escrow account only in response to a consumer’s dated written request to cancel the escrow account that is receiv
