I don't understand the reluctance either.
1. We currently fully document repayment ability, have for several years even with the "stated income" loans through Freddie.
2. We have no call provisions, other than default provisions, in our mortgage notes.
3. We have no pre-payment penalties, other than a minimum finance charge that is allowed by law and falls within the guidelines.
3. We do not make balloon loans. Haven't for at least 5 years.
4. We offer no discount or premium ARMS. They are fully indexed at the time of consummation.
5. So, why should we avoid HPMLs especially since the most of our HPMLs will be on our higher risk in house 1st and 2nd mortgage loans. Due to all the fees Freddie and Fannie are now charging we may on occasion hit a HPML in the secondary market, but it will be rare and if we do so be it. We will meet the presumption of compliance without any problems and without any major changes in our process.
6. We currently escrow.