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#2167684 - 03/12/18 07:43 PM HPML question
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
We price our loans based on the "calculator" because we are not set up to service HPML loans and provide the periodic statements. With that said, here is our question:

We made a loan 5/1 ARM loan August 2014 with a rate below the calculator rate. We have since discovered that at time of first rate change in August 2019, its looking like the rate change will put us over the rate for HPML loans. What's the best option to handle this situation?

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Escrows on Higher-Priced Mortgages
#2167692 - 03/12/18 08:06 PM Re: HPML question mdog76
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,017
Bloomington, IN
HPML calculations are based on the effective rate and fees at the time of closing. Future rate adjustments are not a factor.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2167696 - 03/12/18 08:16 PM Re: HPML question mdog76
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,333
Galveston, TX
HPML is also based on the APR, which while related, really has nothing directly to do with the interest rate on the loan.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2167737 - 03/13/18 12:25 PM Re: HPML question mdog76
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
So we should be good then. Thanks for the help.

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