Small Creditors, Small Lenders, and Small Servicers

Recorded: March 26, 2025
Presented by: Ginger McCullough, Manager, Forvis Mazars, LLP

A two-hour webinar discussing the definitions and specific rules/exceptions that apply to smaller institutions.

Small institutions generally engage in “relationship banking” and are more likely to understand and try to help their customers. For that reason, the agencies created certain exclusions or slightly different rules for them.  Specifically, “small creditors” have exceptions or options under the Higher-Priced Mortgage Loans (HPMLs) and Ability to Repay/Qualified Mortgages under Truth-in-Lending Act/Regulation Z; “small lenders” have an exception from the escrow requirements under Flood Insurance; and “small servicers” have exceptions or alternative rules under TILA/Regulation Z and RESPA/Regulation X.

Notably, examiners have been finding increased violations regarding these provisions, particularly the escrow requirements under the Flood Insurance rules, which require, when an institution ceases to qualify as a small lender, to not only start escrowing but also provide existing customers with the option to escrow (unless otherwise exempted).

This webinar will discuss these rules, including the definitions of “small creditor,” “small lender,” and “small servicer” in detail and then provide an overview of the rules themselves to explain the importance of being a “small” institution.

HERE’S WHAT YOU’LL LEARN:

• Definition of “small creditor,” “small lender,” and “small servicer”
• Small creditor rules: HPML and Qualified Mortgages (TILA/Reg Z)
• Small lender rules: Escrow (Flood Insurance)
• Small servicer rules: Periodic statements (TILA/Reg Z) and numerous mortgage servicing rules under RESPA/Reg X
• Reg X