The first mortgage was closed several years ago, before HPML. It was also a business loan with additional properties (apartment building & large acreage) and there are no escrows. The 2nd mortgage application we have received is for consumer purposes on their primary residence only.
1. Can the margin on the adjustable rate terms be higher than the margin on a first mortgage?
2. Can we require escrows even if the HPML doesn't apply?
Thanks

1. Can the margin on the adjustable rate terms be higher than the margin on a first mortgage?

Interest rate are governed by State law.

2. Can we require escrows even if the HPML doesn't apply?

You can require anything that you want too that is allowed by State law.