---
title: Canceling Escrow Accounts on HPMLs
description: Understand the rules for canceling escrow accounts on Higher-Priced Mortgage Loans after five years and the criteria that must be met for cancellation.
---

[Banker's Compliance Consulting Blog ](https://blog.bankerscompliance.com/en)

# [Canceling Escrow Accounts on HPMLs](https://blog.bankerscompliance.com/en/canceling-escrow-accounts-on-hpmls)

 Written by [Kevin Edwards](https://blog.bankerscompliance.com/en/author/kevin-edwards) | Apr 13, 2026 1:16:15 PM

[§1026.35(b)](https://www.consumerfinance.gov/rules-policy/regulations/1026/35/) generally requires that any first-lien Higher-Priced Mortgage Loan (HPML) must have an escrow account for the payment of property taxes and lender-required insurance (hazard, flood, mortgage etc.) established prior to loan consummation. While there are a lot of exceptions to this requirement, the established escrow account must be in place for at least five years following loan consummation. Once the five years have passed the lender may allow the customer to cancel the required escrow account; however, certain criteria must be met.

Kevin explains more in the video.

Published 2026/04/13

[View full post](https://blog.bankerscompliance.com/en/canceling-escrow-accounts-on-hpmls)

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