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January 6, 2015
Business Accounts Documentation and Procedures with Beneficial Ownership
Deborah Crawford

January 6, 2015
FFIEC Cybersecurity Initiatives and Observations from the 2014 Assessments
Susan Orr

January 15, 2015
The ABC's of IRAs - The Basic Ingredients
Patrice Konarik

January 20, 2015
B & Z Appraisal Rules - Getting Them Right
Jack Holzknecht

January 21, 2015
HMDA Soup to Nuts
David Dickinson

January 22, 2015
Navigating the Treacherous Waters of IRA Rollovers, Transfers and Beneficiary Payouts
Patrice Konarik

January 28, 2015
Mortgage Life Cycle
Part I
David Dickinson and Jerod Moyer



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#1455895 - 10/15/10 03:58 PM HPML - rate spread
odimel2 Offline
100 Club

Registered: 09/23/08
Posts: 136
Loc: Las Vegas, NV
I need a little clarification on HPMLs. If you run the FFIEC rate spread calculator and the end result rate spread is above 1.50%, is this not a High Priced Mortgage Loan?

I have seen a HPML Checklist & Worksheet where it plugs in certain numbers and it ends up stating the loan is NOT an HPML loan even though the spread is above the 1.50%

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Lending Compliance
#1455905 - 10/15/10 04:10 PM Re: HPML - rate spread [Re: odimel2]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 4555
Loc: OK
1.5 points for a first lien; 3.5 for a subordinate lien. Maybe the loan you are looking at is a subordinate lien?
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#1455918 - 10/15/10 04:23 PM Re: HPML - rate spread [Re: raitchjay]
odimel2 Offline
100 Club

Registered: 09/23/08
Posts: 136
Loc: Las Vegas, NV
No, it is a first position mortgage.. i just wanted to know if the rate spread calculator shows the spread is over 1.5%, does this mean the loan is a HPML irregardless of any other requirements?

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#1455925 - 10/15/10 04:26 PM Re: HPML - rate spread [Re: raitchjay]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 41156
Loc: Bloomington, IN
Quote:
I have seen a HPML Checklist & Worksheet


You by chance aren't using the HOEPA worksheet are you? They are two entirely different animals.

http://www.bankerscompliance.com/assets/files/documentation/HOEPA%202009-1.xls
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1455932 - 10/15/10 04:30 PM Re: HPML - rate spread [Re: odimel2]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 4555
Loc: OK
If it's secured by the primary residence of the borrower(s), can't be exempted from Sec. 35 of Reg Z as temporary financing, or exempted from Reg Z altogether, yes.
_________________________
"I have yet to see a piece of writing, political or non-political, that doesn't have a slant..."

E.B. White


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#1455940 - 10/15/10 04:38 PM Re: HPML - rate spread [Re: odimel2]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 41156
Loc: Bloomington, IN
Originally Posted By: kthiessen2700
No, it is a first position mortgage.. i just wanted to know if the rate spread calculator shows the spread is over 1.5%, does this mean the loan is a HPML irregardless of any other requirements?


HPML - exemptions are noted in 226.35(a)(3)

1st lien - 1.5% or greater

Subordinate lien - 3.5% or greater


HOEPA - exemptions are noted in 226.32(a)(2)

1st lien - 8% or greater

Subordinate lien - 10% or greater
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1455944 - 10/15/10 04:42 PM Re: HPML - rate spread [Re: Dan Persfull]
odimel2 Offline
100 Club

Registered: 09/23/08
Posts: 136
Loc: Las Vegas, NV
so to reconfirm, if the FFIEC rate spread calculator reflects a spread that is over 1.5%, that means the loan is a HPML right?

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#1456044 - 10/18/10 08:33 AM Re: HPML - rate spread [Re: odimel2]
Carolina Blue Offline
Platinum Poster

Registered: 07/22/05
Posts: 604
Loc: Lost in a regulatory fog
Yes, but just to clarify. If you plug the numbers into the FFIEC rate calculator and the calculator gives you ANY number back, then that number is the rate spread and the loan is a HPML. The calculator factors in the applicable threshold when doing the calculation so you don't have to determine. Only if you get back "N/A" is the loan then below the threshold and is not HPML.

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