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#1567089 - 06/20/11 05:53 PM HPML Bridge Loan Escrow
Sugarbaker Offline
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Posts: 265
If we are doing a bridge loan which qualifies as an HPML and taking the existing home, new home and one additional piece of property (rental house) as collateral, are we required to escrow for each piece of collateral?

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Lending Compliance
#1567093 - 06/20/11 06:05 PM Re: HPML Bridge Loan Escrow Sugarbaker
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
See 226.35(a)(3).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1567098 - 06/20/11 06:01 PM Re: HPML Bridge Loan Escrow Dan Persfull
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Yes. You're right it wouldn't even apply. Thanks so much Dan!

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#1567225 - 06/20/11 08:19 PM Re: HPML Bridge Loan Escrow Sugarbaker
Sugarbaker Offline
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Posts: 265
I misunderstood the situation we have here. Please offer your opinion on the situation below.

A current bridge loan that is maturing and will be converting to an ARM loan and amortized out, but it will be paid off when the loan on the existing home sells. New ARM is an HPML. Collateral on new ARM is existing home, new home and rental property. Will all escrow need to be set up for expenses on all the properties used as collateral?

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#1567252 - 06/20/11 08:43 PM Re: HPML Bridge Loan Escrow Sugarbaker
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
You would only have to escrow for the primary dwelling. See the Commentary to 226.35(b)(3).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1567673 - 06/21/11 05:25 PM Re: HPML Bridge Loan Escrow Dan Persfull
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Joined: Nov 2005
Posts: 265
Thanks again. I appreciate your help.

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