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#1292464 - 11/24/09 05:44 PM need more help
QueenBB Offline
100 Club
Joined: Jan 2006
Posts: 190
Sometimes people just get too creative. The question of the day is if we make balloon loans (probably over 7 years), and keep the APR under the threshhold of 1.5% from APOR, are the loans subject to escrow? I don't believe so because they are not HPMLs. I have also read comments about "designing" loans to get around the designation, so I understand the problems with this.

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#1292466 - 11/24/09 05:47 PM Re: need more help QueenBB
Doug Hendrickson Offline
Power Poster
Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
If it's under the threshhold, then it's not an HPML and the escrow rule doesn't apply.
I hear and I forget. I see and I remember. I do and I understand.--Confucius

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