I'm currently reviewing a construction/perm mortgage and its marked as a HOEPA loan. The reason it got marked as a HOEPA loan is due to the points and fees exceeding the threshold. I checked at the points and fees and they are including a pay off to the estate in the points in fees section. This loan was underwritten as a refinance. This loan was purchasing property from family and paying off a bank owned loan on the mobile home. The mobile home was to be moved from that property and set up on a different property. Please let me know if that is correct for this payoff to the estate to be included on the points and fees and if this should still be a HOEPA loan.

On what basis was the payoff figure for the old loan considered "points or fees"? I don't see it fitting any of the elements of points and fees. Could someone have gotten it confused with the prepayment penalty element of P&F?

So if this was confused and the payoff shouldn't be considered points and fees, would this loan still be considered a HOEPA loan?

Not if points and fees was the only measure on which it was classed as a HCML (AKA HOEPA loan), assuming that recalculation of P&F eliminates the P&F trigger.