Is escrow required for HELOCs? The borrower does not currently have a first mortgage on their property.
We are completing a mortgage Loan that is a HPML and we are escrowing taxes. Can the customer opt out of escrowing after one year of payments?
I am working on a new loan transaction. The borrower is purchasing a primary residence and the loan will be sold in the secondary market. The 20% down payment will be borrowed against his home that is currently his primary residence that he owns free and clear. After the purchase is finalized, he will be living in the new home as his primary residence and the home he owns now that will be securing the equity loan will be used as an investment property. Does RESPA apply to the equity loan? Do early disclosures have to be issued? Also, does rescission apply to the equity loan since it is in fact his primary residence at this time. Also, since the equity loan will be kept in-house on a balloon rate, will this be considered a HPML where escrow will have to be collected?
In a first lien home equity loan against a dairy and primary residence where the funds are to pay commercial taxes, not for a consumer purpose, would the escrow requirements under the HPML come into play?
Our bank has an existing balloon loan that will mature after April 1, 2010. If at maturity, the bank renews this loan to continue the orginal amortization schedule, will this loan be subject to HPML limits?
Can a borrower revoke our obligation to escrow for taxes and insurance on an HPML before the initial twelve month requirement is over?
If the bank makes a consumer related loan and refers to the Future Advance Clause of a previous mortgage that secures the borrowers primary residence, is the new loan subject to RESPA and HPML regulations?
Under the new Reg Z requirements for Higher Priced Mortgage Loans, I understand that home equity lines are exempt. Am I correct? If so, what are the rate and term restrictions for a closed end line?
Does RESPA prohibit a lender from financing escrow payments for a HPML?
Reg. Z defines an HPML as "a consumer credit transaction secured by the consumer's principal dwelling with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction as of the date the interest rate is set by 1.5 or more percentage points for loans secured by a first lien on a dwelling, or by 3.5 or more percentage points for loans secured by a subordinate lien on a dwelling". Can a loan with an APR equal to the APOR plus 1.5 or 3.5 (as appropriate) be considered to be an HPML, or must the rate exceed the APOR plus 1.5 or 3.5? Am I over-thinking this?