Do the HOEPA compliance regulations have "grandfather" considerations for pipeline loans? Is the regulation applied based on the application date, current date or date of lock?
Where can I find a sample form of the HOEPA disclosure? I have never needed one before, but now have a closed-end junior lien with credit life and disability.
When we make a business purpose loan taking the borrower's primary residence as collateral, are we required to check for HOEPA or can I assume that if a TIL is not required then HOEPA would not apply?
The 30 year Treasury constant maturity series was discontinued on February 18, 2002 and introduced again on February 9, 2006. In 2002, financial institutions were instructed to use the 20 year maturity series when performing the HOEPA Points & Fees Test. We have not been able to find any update to say that we need to start using the 30 year maturity series again. Can you tell us what the expected behavior is for 30 year mortgages when performing the HOEPA points and fees test?
We are in the process of promoting a "new" first mortgage product that will be a fixed rate mortgage product and it will contain a prepayment penalty. Where can we find some good information on the regulatory/legal issues involved?
What are the defined steps to follow when making and closing a HOEPA loan? Also, the regulations say you must give HOEPA disclosures, does this mean only the "Special Mortgage Disclosure" or do we need to send some other disclosures? The "Special Mortgage Disclosure" has all of the information pertaining to the loan, is this the only one the customer needs to sign and date?
We are a mortgage bank with a somewhat significant manufactured housing division. A question that continues to arise deals with whether a manufactured home is a purchase or a refinance if the borrower owns the land before purchasing the manufactured home. For our secondary market investors, we show the transaction as a refinance of the land loan with improvements. For compliance purposes, I view this transaction as a purchase or a residential mortgage transaction. As the land owner did not live on the land before purchasing the manufactured home and attaching that home to the land, the loan transaction to fund the purchase of a manufactured home to attach to the land should be a residential mortgage transaction, correct? Or is it a refinance and we are stuck with Reg Z's ROR and HOEPA requirements? Also, the manufactured homes have significant discount points to lower the rate which hurts for HOEPA if the loan is a refinance.
Does HOEPA apply to bridge loans? Here are three scenarios: <ol><li>Purchase new primary residence, secured by that residence. <li>Purchase new primary residence, secured by current primary residence. <li>Purchase new primary residence, secured by both the current and new residences. </ol>
The 2004 HMDA data is finally out and the numbers show what we expected and feared: Black Americans fare less well in the mortgage market than non-Hispanic whites. Now what?
Most community banks claim that they really don't make high cost loans. The 2004 HMDA data supports this claim. The top 10 lenders made 38% of the reported high cost loans.