Which of the following is NOT a requirement for the small lender exception?

The small lender exception allows specific credit unions to operate without certain requirements that larger lenders must follow. Among the conditions for this exception is that a credit union must not be mandated to create an escrow account for loans, a limit on total assets, and that it does not have a consistent escrow policy.

When examining why the assertion about the credit union having a policy of requiring escrow for all loans is not a requirement for the small lender exception, it is clear that the essence of this exception is to provide flexibility for smaller institutions. Requiring escrow for all loans would contradict the purpose of the small lender exception, which is to enable smaller entities with fewer resources and operations constraints to offer loans without the burden of maintaining escrow accounts.

Thus, the requirement that the credit union must have a policy of requiring escrow for all loans goes against the intention of the small lender exception, making it the choice that does not belong among the legitimate requirements for that exception.