1121.1 A borrower may elect not to make escrow payments to the mortgage lender when the borrower has made a down payment equaling twenty percent (20%) or more of the total purchase price of the property or has an equity interest in the property equal to, or greater than, twenty percent (20%) of the fair market value of the property.

1121.2 A mortgage lender may not impose a penalty or fee, including an increase in interest or other finance charges, when a borrower is not required, pursuant to section 16 of the Act, to make advance payments of real estate taxes or insurance premiums.

SOURCE: Final Rulemaking published at 56 DCR 4356, 4374 (June 5, 2009).