In a move unpopular among mortgage lenders and servicers. HUD sided with consumer groups by striking the widely used single-item analysis escrow accounting method from its books and will require an industrywide switch to the new aggregate method that could be in effect as soon as May 1997.
The rule will establish a new section, 3500.17, in escrow accounting procedures of Regulation X Real Estate Settlement Procedures Act. HUD is expected to publish the rule in the Federal Register between Nov. 29 and Dec. 3. After that, lenders will have 180 days to comment on the rule. But according to some mortgage industry sources, the likelihood of any change is remote.