Yes, you do still have to meet the more than 50% criterion, or you will once section 1026.43(e)(6) sunsets on April 1, 2016. The law doesn't define what "operates" in a rural or underserved area means. That means that the Bureau has to interpret the requirement. Until it amends 1026.35(b)(2)(iii)(A), the criterion remains as found there.
Last edited by John Burnett; 02/02/16 06:52 PM.
As for junior liens, the count required by 1026.35(b)(2)(iii)(A) is of first lien covered transactions only. A junior lien loan isn't subject to the HPML escrow requirements anyhow. But, unless the lender is exempt under 1026.35(b)(2)(iii), a junior lien HPML could be subject to the HPML appraisal requirements in 1026.35(c) and the prohibitions in 1026.35(d).
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8