Cancelling an Escrow Account on a HPML

Do you have a borrower that wants to cancel the required escrow account on their Higher-Priced Mortgage Loan (HPML)?



First you need to understand what your options are.  Option #1 is that you don’t have to honor their request.  You can require they keep the escrow account in place.  Option #2 is to allow them to cancel the escrow account.  But, they MUST meet all of the following criteria before doing so:


  1. It must be five years since the HPML (and required escrow) were originated;
  2. They must be at 80% loan to original value (not current value) of the property; and,
  3. They cannot be delinquent at the time of the request.


This is just one of the many topics that we will address in our upcoming “Ability to Repay, Qualified Mortgage, High-Cost & Higher-Priced Mortgage Loans” webinar. On April 23, 2019, we will spend two hours walking you through the compliance requirements for these types of loans and answering your questions along the way.  See you then!


Register NOW


Jerod Moyer


See all training options here –


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