I am having a horrible time trying to get the concept of figuring the fee's on a loan, to verify that it's not, or is, a HOEPA loan. Is there a calculator that can do this for us? (other then the worksheet!) I have a very difficult time, trying to figure out which fees need to be where.....thank you for taking the time to read this!! And thank you in advance for the help!
The Federal Reserve has announced the fee-based trigger for calculating HOEPA loans (high cost mortgages.) The new figure for 2004 will be $499. The APR tolerance remains unchanged.
If a bank makes a loan subject to HOEPA without proper disclosures, how can the bank cure the violation?
We are offering Closed End Home Equity loans which have closedend monthly outstanding balance (cemob)credit insurance premiums on them. We have been told that we may be in violation of Reg Z with respect the "Finance Charge" since the "Total of Payments" includes the PandI plus the monthly insurance premiums. The insurance premiums are exempt from the Finance Charge (not required to obtain the loan and according to HOEPA rules). However when auditors use the conventional TruthinLending testing tools, the loans show up as a Reg Z violation due to the "Total of Payments" including the Insurance Premiums. I would appreciate any information you may have on this subject.
What kind of fines and penalties apply if the required HOEPA disclosures were not given to the customer?
We have a customer who has struggled to make his payments on his mobile home loan. The mobile home is his principal dwelling and the original loan was purchase money. He was past due and we were about to foreclose when he asked if we could renew his note to get it current. He had changed jobs and after checking his income to debt and cash flow, we agreed to refinance the loan. Does the refinanced loan fall under HOEPA?
Does the HOEPA test apply if I am doing a loan on a mobile home that is the borrower's primary residence but only the title is held as security? No mortgage (only a lien on the title) or land is involved.
With regard to HOEPA, Reg. Z 226.32 commentary discusses how to determine the comparable Treasury security. In this commentary, they state to use the yield on the security that has the nearest maturity at issuance to the loan's maturity. It goes on to give several examples. However, it does not address how to determine the comparable security for a 30 year maturity. Can you please tell me which comparable security should be used for 30 year loans?
Do HOEPA regulations require the customer to sign the disclosure?