Topic: CFPB 2014 Mortgage Rules: HOEPA Changes
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Under the new HPML requirements, we must keep escrow accounts for HPMLs open for five years. However, what if Illinois law permits a borrower to cancel the escrow before the five years is up?
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In the context of mortgage escrow accounts, to the extent that a federal requirement conflicts with the Illinois law, federal law will preempt the state law. Olsen v. Financial Fed. Sav. & Loan Ass’n, 105 Ill.App.3d 364, 371 (1st Dist. 1982). (This is not always the case, as some federal laws expressly allow state law…