My financial institution does not intend to offer loans that trigger HOEPA, but I still need procedures in place to make sure this doesn't occur. Is there a specified treasury index to be used? Most of our loans are 30year, and now the 30year treasury is discontinued. What should I use for a "treasury security with a comparable maturity"?
Is there a section in the regulation that clearly defines what loans are excluded under HOEPA (i.e., construction) Under state regulation it appears that construction loans are exempt however I am unable to locate anything in the reg.
Question: The model form for HOEPA disclosures does not have a line for signatures. Is it a requirement to get the customer's signature on the form?
Question: I realize that with the new HOEPA regulations, we need to take steps to be sure we aren't making HOEPA loans.
Where or who can we go to in order to get more information on HOEPA and CEPA?
If the customer decides after closing that they want credit insurance and it now makes the loan fall into HOEPA, do you give them the disclosures after the fact?
We do not want to make any highcost home loans under any state laws or under HOEPA. If we do a rate and fees test during the processing of a loan application and determine that it does meet a highcost loan test, can we deny a loan on the basis that we do not want to make a loan that is subject to HOEPA or other highcost home loan restrictions or must we lower our rate and/or fees to avoid coverage?