1026.43(b)(4) states that a small creditor QM is higher-priced if the APR exceeds the APOR by 3.5 percentage points or more, for both first and junior liens. I assume that doesn't apply to the requirement for escrow though, correct? You still must use 1.5 percentage points for first-liens to determine if the loan is HPML and therefore escrow is required for the first 5 years.?
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