I agree. No delay between GFE and closing.

Thanks for bringing me out of my state of confusion regarding the GFE. That's going to sink in.

I'd like to learn from those of you who do not redisclose when the APR is overstated. Our most frustrating scenario involves seller paid closing costs at the 11th hour. Some of our investors require redisclosure even when the APR is overstated. In one such instance, the disclosed finance charge was $37 lower than the actual charge. The timing delay caused a lock expiration which triggered lock extension fees and another round of negotiations. Not a consumer friendly consequence.

I've reviewed the regs until nearly blind and would like to hear your thoughts on whether I can rely on my understanding stated in my earlier post and repeated below:

The APR is considered accurate if it does not vary from the initial disclosure by more than .125% on a fixed rate mortgage and .25% on an ARM. An exception to this is provided for when the APR varies by more than the accepted tolerances.

When the APR exceeds the accepted tolerances, it is also considered accurate if

a) the actual APR results from the disclosed finance charge; and

b) the finance charge is accurate. The finance charge is considered accurate if the actual amount is not higher than $100 from what was originally disclosed or if the actual amount is less than what was originally disclosed (overdisclosed).

I think the test is "regular vs irregular" payments not "fixed rate vs ARM".

myahn, I think you are on the right track, however, the issue is with the investors. You need to work something out with them, maybe even their compliance person.

If it helps, we are in the same situation with investors still holding to that idea of final documents that are totally accurate. They are going to have to live through a few scenarios such as yours to see that they may need to start accepting the valid TIL even if the numbers are off but within tolerance.

For loans subject to HPML and are in a flood zone requiring flood insurance prior to closing, are we obligated to escrow flood insurance also?

yes.

Thank you!

Really should clarify that...they have to BE HPML loans before you are obligated...not just subject to HPML, but i think that's what you meant.

Thank you for the clarification.

The APOR table shows rates to "2" decimal places. Our platform software calculates the APR to "3". We price to avoid having HPMLs. So, for example, the max rate for a 10 year fixed rate loan today would be 7.02% for a first lien. Our software calculation shows the acutal APR to be 7.024. Does the same tolerance of 1/8% apply to this section?

On an HPML to purchase mobile home (which is primary collateral) would you have to escrow on non-borrower principal dwelling (1st lien, site built) taken as additional collateral?

No. A non-borrower doesn't meet Reg Z's definition of a consumer.

Thank you!

Anyone using ARTA,

I'm a little behind on these HPML's. You had mentioned ARTA having the 7 year high payment field. We also use ARTA, however that field always shows the same payment as of consumation. We offer a 5 yr balloon and 1 yr ARMS? Does this field work correctly for you, in determining the highest payment for DTI on HPML's?

I have a HPML and both applicants are paid on a cash basis so W2 shows minimal income, but their deposit relationship is with us so i have verification of cash deposits into the account. Will this satisfy income verification. We want to do the loan and are satisfied with this, but is is ok under HPML?

Would not their tax returns show the additional cash income that is not reflected on the W2?

We have our first subordinate mortgage loan that is a HPML. Am i correct that i need to follow all the rules as if it were a first mortgage except the escrow requirement?