Could someone please explain to me in lay terms the following: APR at consummation will exceed by more than 8% the yield on Treasury securities having comparable periods of maturity on the 15th day of the month immediately preceding the month in which the application is received by the creditor. I would like to explain it in plain English to our production staff in a training session concerning High Cost Loans, so that they would understand it without getting confused. Any guidance would be appreciated.

Your APR exceeds APOR by more than 8%.

Don't do the loan.

What ^^^ said. Now, if that's not what you are looking for, can you be a bit more specific about what part you want to re-word?

Thanks for your guidance.

That's the wording for the old section 32. I don't know that you will gain much by training on this since it was replaced 1/10/14.

Would you happened to have the link to the new wording that was replaced on 1/10/2014?

http://www.bankersonline.com/regs/12-1026/12-1026-032.html

The requirements of this section apply to a high-cost mortgage, which is any consumer credit transaction that is secured by the consumer's principal dwelling, other than as provided in paragraph (a)(2) of this section, and in which:

(i) The annual percentage rate applicable to the transaction, as determined in accordance with paragraph (a)(3) of this section, will exceed the average prime offer rate, as defined in § 1026.35(a)(2), for a comparable transaction by more than:

(A) 6.5 percentage points for a first-lien transaction, other than as described in paragraph (a)(1)(i)(B) of this section;

(B) 8.5 percentage points for a first-lien transaction if the dwelling is personal property and the loan amount is less than $50,000; or

(C) 8.5 percentage points for a subordinate-lien transaction