With the change from Treasury to APOR, plus the % triggers lowering, has anyone done an analysis to see whether more loans will fall into HOEPA come January than did before? Meaning, did the switch to APOR effectively lower the triggers entirely or was the Treasury that much higher to start with on a comparable basis, so lowering the triggers but using APOR, they are somewhat in the same ballpark as before? Sorry if that's confusing, but I haven't found a good source that's done the analysis so not sure if I need to tackle it myself or not. Anyone??

Our policy has been to lower the rate to stay under the HOEPA threshold.

I have been monitoring this the last 3-4 months and have not found any that would have needed to be lowered further due to the new rules. Basically if the rate was lowered to get under the current line, it has been ok when running the new test.

Of course we are seeing an increase in loans that would be HCMls
due to the new transaction types being covered, but the rates haven't been an issue.

We've done the same thing to date in terms of lowering the rate. We don't want to do HOEPA. I was mostly trying to put the comparison / lower triggers into perspective for management on the implications of the change. Thanks for your analysis.

I think (depending on your bank, of course) that the points and fees test is where more of the concern (and effective change) is. I think with the new points and fees portion of the test you could definitely be dealing with more HOEPA loans.