More small banks can now offer higher-priced mortgages without escrow accounts

The Consumer Financial Protection Bureau has raised the asset thresholds for banks that are exempt from setting up escrow accounts for certain higher-priced mortgage loans. This means more small banks can offer these loans without the extra administrative burden of managing escrow accounts.

Banks that fall below these new thresholds can now offer a specific type of mortgage loan without the added cost and complexity of managing escrow accounts. This change makes it easier for smaller lenders to compete in the market for these loans. It also means more borrowers might get these loans without the built-in savings mechanism of an escrow account.