If you have a person who is purchasing a mobile home as their primary residence but they do not legally own it (title in someone else's name example in-laws)does HOEPA still apply? I cannot find anything that states if it is exempt or not from Hoepa since they do not "own" the mobile home.

Also, has there been any further documentation or information for 2014 HOEPA? I can find 2013 but not 2014 that is clear enough for me to answer several more questions about HOEPA. Anyone have a link they can share? Thank you for your help in this matter!!

(title in someone else's name example in-laws)does HOEPA still apply?

No. The mobile home is not his, it is his in-laws home and unless the in-laws are signing the note they are not consumers for the purposes of Reg. Z other than the ROR if the home happens to be their primary residence.


Also, has there been any further documentation or information for 2014 HOEPA?

Not sure what you are looking for. If you are looking for the fees threshold they are found in the Commentary to 1026.32(a)(1)(ii).

xix. For 2014, $632, reflecting a 1.1 percent increase in the CPI–U from June 2012 to June 2013, rounded to the nearest whole dollar.

Thanks Dan for responding. What I was looking for was the actual rule that states what it takes to make a loan HOEPA. This is so confusing for our lenders and I wanted to give them the definition of what makes a HOEPA loan. For example: Does it have to be a purchase of a primary residence for it to be HOEPA? Does it have to be owner occupied? things like that. I know the fees/APR are part of it but need the whole rule of which type of property/consumer makes it a potential Hoepa loan before you get to the fees/APR. Thanks!

GREAT!!! That is what I was needing! THANK YOU!!!

Thanks, Dan.

I would like to tag onto this question and ask if the following fall under HOEPA?

Trust loan?

Change in term?

Thank you.

Trust loan - you will need to check your state law to see if trusts are considered consumers. Under current rules we treat all revocable trusts as consumers and all non revocable trusts as a business entity.

Change in term - as long as the modification doesn't elevate to a refinancing then .32 would not apply. You can review 1026.20(a) and its Commentary for additional information.

Trust loans -- Although it won't go into effect until August 1, 2015, there's added Commentary to 1026.3(a) that draws a bit brighter line on the subject. It generally follows Dan's comments above. We've got those pending comments in our Read A Reg copy of Regulation Z. Check out this page:

http://www.bankersonline.com/regs/12-1026/12-1026-003.html

scroll down to the Commentary (blue background text block) and look for revised comments 3(a)-9 and -10 (they're in purple text). If the loan's exempt from Reg Z under the Organizational Credit exception, it can't be a HOEPA loan.

Thank you both for the great information.

So, we have a customer who is purchasing a primary dwelling. Being that the home is not in his name, since the loan has not closed, does HOEPA apply? I found some information that expands the rule to include loans for residential mortgage transactions--purchase money and of course lines of credit.

Is the information about the purchase money correct?

test

Any thoughts??

I don't follow the "home is not in his name" part. You mean it's not in his name "yet" (because the loan hasn't closed) or that the loan will be titled to someone else (yet he'll live in it)? If he's purchasing the home to be his primary residence, the loan will be subject to HOEPA, yes.

The short of it is, loan is for 181 days to purchase primary residence...does HOEPA apply. If found some information that said the rules of Reg Z were expanded to incorporate residential mortgage loans but our loan software is not providing us the information.

Yes, it would be subject to HOEPA. The only exemptions now for consumer loans secured by the primary residence of the borrower are for reverse mortgages or initial construction loans.

We have a mobile home (primary res.) loan with land. The mobile home is titled in the name of the land owner, would we test the HOEPA status using 8.5% or 6.5% threshold? Our loan platform is testing using the 6.5% but I was thinking since is was titled it would be considered personal property and would be tested against 8.5%????