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#2119462 - 02/24/17 06:01 PM APR tolerance on Fixed Rate Loan with PMI
ahou Offline
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ahou
Joined: Aug 2002
Posts: 3,094
Does PMI makes a closed end loan subject to an APR tolerance of .25%? (irregular loan)
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Lending Compliance
#2119479 - 02/24/17 06:39 PM Re: APR tolerance on Fixed Rate Loan with PMI ahou
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,180
Toano, VA
Yes, provided the resulting payment schedule is more complex than:
0 or 1 @ $A
n @ $B
0 or 1 @ $C
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#2119533 - 02/24/17 09:18 PM Re: APR tolerance on Fixed Rate Loan with PMI ahou
ahou Offline
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ahou
Joined: Aug 2002
Posts: 3,094
Ours are usually 2 payment streams such as:

9 @ $xxxx (pmt + PMI)
15 @ $xxxx (pmt with no PMI)

Not very complex smile
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#2119569 - 02/24/17 11:33 PM Re: APR tolerance on Fixed Rate Loan with PMI ahou
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,180
Toano, VA
9 exceeds 0 or 1, so you have an "irregular transaction" and get 0.25% APR disclosure tolerance.
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#2119570 - 02/25/17 12:13 AM Re: APR tolerance on Fixed Rate Loan with PMI ahou
ahou Offline
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ahou
Joined: Aug 2002
Posts: 3,094
Thanks Richard.
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