[kmeade]

If a high-priced mortgage loan requires escrows, and the borrower is financing the initial escrow balance, is the initial escrow balance included in the HOEPA calculation.

[rcooper]

I believe you’re asking if it would be included in the points and fee calculation. The SECG, p. 25, summarizes it pretty well:
Real estate-related fees (§ 1026.32(b)(1)(iii))
The following categories of charges are excluded from points and fees only if:
1. The charge is reasonable;
2. The creditor receives no direct or indirect compensation in connection with the charge;
and
3. The charge is not paid to an affiliate of the creditor.
If one or more of those three conditions is not satisfied, you must include these charges in
points and fees even if they would be excluded from the finance charge:
 Fees for title examination, abstract of title, title insurance, property survey, and similar
purposes
 Fees for preparing loan-related documents, such as deeds, mortgages, and reconveyance
or settlement documents
 Notary and credit-report fees
 Property appraisal fees or inspection fees to assess the value or condition of the property
if the service is performed prior to consummation, including fees related to pestinfestation or flood-hazard determinations
 Amounts paid into escrow or trustee accounts that are not otherwise included in the
finance charge (except amounts held for future payment of taxes)

Let me know if I’ve misunderstood your question. Thanks!

[Author]

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