Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network



May 27, 2015
Compliance Management – Phase 1, your Program and Training
Andy Zavoina

May 28, 2015
Integrated Disclosures 101
Mary Beth Guard, John Burnett and Andy Zavoina

June 11, 2015
New Tech Advances to Improve Info Security
Susan Orr

June 22, 2015
50 Key Considerations for Integrated Disclosure Rules Readiness
Mary Beth Guard and Jack Holzkechnt

June 23, 2015
The IRS and TINs: The High Cost of Name Mismatches
Deborah Crawford



Topic Options
#1282265 - 11/06/09 08:44 AM Avoiding the HPML Threshold
Cale_N_Oats Offline
Platinum Poster

Registered: 08/14/08
Posts: 742
Loc: Southern Illinois
I recently got back from a Compliance seminar and one thing that was discussed was higher priced mortgage loans. One suggestion for manuvering around the HPML threshold would be to make a first mortgage for a low amount at a lower rate and then make a second mortgage for the larger amount. This would give you a little more wiggle room since with the second lien you would be looking at a 3.5% threshold rather than the entire amount on a first lien at a 1.5% threshold. Does anyone know if the regulation prohibits this or has their been and commentary on the matter?
_________________________
Serenity Now!!!

Top
Lending Compliance
#1282278 - 11/06/09 08:56 AM Re: Avoiding the HPML Threshold [Re: Cale_N_Oats]
Sinatra Fan Online
Power Poster

Registered: 07/19/02
Posts: 5375
Loc: New Jersey
As long as neither loan is an open-end loan, I think you may be OK. 12 CFR 226.35(b)(4) specificially prohibits structuring a home loan as an open-end loan to evade the requirements of the HPML section.
_________________________
Management is doing things right; leadership is doing the right things. Peter Drucker

Top
#1282708 - 11/06/09 12:54 PM Re: Avoiding the HPML Threshold [Re: Sinatra Fan]
Cale_N_Oats Offline
Platinum Poster

Registered: 08/14/08
Posts: 742
Loc: Southern Illinois
Thats what i thought too. Besides totally spitting in the face of the regulation i couldn't find anything wrong with it either.
_________________________
Serenity Now!!!

Top
#1282716 - 11/06/09 01:03 PM Re: Avoiding the HPML Threshold [Re: Cale_N_Oats]
Truffle Royale Offline


10K Club

Registered: 07/09/03
Posts: 14795
And I STILL don't get the big deal with HPML that it has to be manuvered around. Seriously, what are people trying to avoid and why? I'd rather make a borrower escrow than have to duck and weave around my examiners.

Top
#1282800 - 11/06/09 02:02 PM Re: Avoiding the HPML Threshold [Re: Truffle Royale]
Cale_N_Oats Offline
Platinum Poster

Registered: 08/14/08
Posts: 742
Loc: Southern Illinois
haha, i hear you Truffle, this was just something brought up by some old school banker that will eventually come back to bite him. I personally don't find anything wrong with escrowing, it's not hard most of it is automated.
_________________________
Serenity Now!!!

Top

Moderator:  Andy Z