On February 23rd, the Federal Reserve Board issued a final rule and requested public comment on a second rule revising the escrow account requirements for certain home mortgage loans. The revisions to the regulation implementing the Truth in Lending Act (TILA) are being made in accordance with the Dodd-Frank Act. The final rule implements a provision of the Dodd-Frank Act that increases the annual percentage rate (APR) threshold used to determine whether a mortgage lender is required to establish an escrow account for property taxes and insurance for first-lien, "jumbo" mortgage loans. A first-lien mortgage is considered a higher-priced mortgage loan if its APR is 1.5 percentage points or more above the current average prime offer rate. Under the new final rule, the escrow requirement will apply to first-lien jumbo loans only if the loan's APR is 2.5 percentage points or more above the average prime offer rate. The APR threshold for non-jumbo loans remains unchanged. The final rule is effective for covered loans for which the creditor receives an application on or after April 1, 2011. The proposed rule would expand the minimum period for mandatory escrow accounts for first-lien, higher-priced mortgage loans from one to five years, and longer under certain circumstances. The proposal also would implement new disclosure requirements contained in the Dodd-Frank Act. Comments on the proposed rule should be submitted within 60 days after publication in the Federal Register, which is expected during the week of February 28. Federal Reserve Board Press Release.