how long does the escrow account have to be active on a higher-priced mortgage loan?

Escrow accounts for higher-priced mortgage loans (HPML) must be maintained for a minimum of five years from origination. After that five-year period, cancellation is allowed only under specific conditions: the loan’s unpaid principal balance is less than 80% of the original value of the property, and the borrower is not delinquent or in default on the loan, or the borrower requests cancellation and the lender approves it under those same conditions. Some small creditors or rural/underserved-market exceptions may apply, but generally the five-year requirement stands and cancellation is not automatic after five years without meeting the stated criteria. If the loan is not HPML or the application criteria differ, other rules may apply.