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#2186931 - 07/26/18 03:06 PM HPML vs. Non-HMPL whats the risk
Anonymous
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currently we don't offer HPML loans, Board and lenders want to know - what's the additional risk - if we offer HPML and don't fully comply vs. how we're operating currently by not offering HMPLs?

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#2186935 - 07/26/18 03:14 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
DoS Offline
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I'm not sure there is enough info here for anyone to answer, however I don't see "offer HPML and don't fully comply" as a valid option ....
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#2186945 - 07/26/18 03:52 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
Inherent_Risk Offline
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Are you asking what the potential penalties are for knowingly violating a Federal consumer financial law?

They are high. 12 U.S. Code § 5565 - Relief available

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#2186949 - 07/26/18 03:56 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
raitchjay Online
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I think they're asking what are the compliance risks involved if they start originating HPMLs and don't really know what they're doing.....i'd say you need to study up on 1026.35 and 1026.43, for starters.
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#2186969 - 07/26/18 05:11 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
Adam Witmer Offline
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Or, did this question mean to refer to QMs? I have heard many ask what the risk is of originating a non-QM. I have never heard questions regarding the risks of originating HPMLs as the question I hear asked for HPMLs is this: what additional hoops must be jumped through for HPMLs?
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#2186972 - 07/26/18 05:18 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
raitchjay Online
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I know lots of banks have stated that they don't originate HPMLs. (I think a lot of banks--rightly or wrongly-- associate HPMLs with HOEPA loans.)
Last edited by raitchjay; 07/26/18 05:22 PM.
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#2186973 - 07/26/18 05:19 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
raitchjay Online
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So, i take the OP's question to be this, in a nutshell: "We don't currently originate HPMLs, but are considering doing so. What are the risks associated (since we don't currently know all the rules associated with HPMLs)."

Obviously, the OP can correct that if they wish.
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#2186976 - 07/26/18 05:24 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
Adam Witmer Offline
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Originally Posted By raitchjay
I know lots of banks have stated that they don't originate HPMLs. (I think a lot of banks--rightly or wrongly-- associate HPMLs with HOEPA loans.)

I do as well. I was just thinking the question made more since when you inserted QM instead of HPML and was thinking from more of a safety and soundness perspective. Otherwise, it's really just the question Inherent_Risk posed: What are the potential penalties for knowingly violating a Federal consumer financial law?
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All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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#2186977 - 07/26/18 05:26 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
raitchjay Online
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I don't think the OP is saying they intend to intentionally make HPMLs and ignore the HPML rules...i think they're saying they don't currently UNDERSTAND the HPML rules. But hey, only the OP can say for sure.
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#2186979 - 07/26/18 05:29 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
raitchjay Online
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I think the OP's "and don't fully comply" was meant as a statement about their current lack of knowledge of the rules associated with HPMLs.....not a desire to ignore those rules...but again, maybe they can clarify.
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#2188070 - 08/06/18 01:20 AM Re: HPML vs. Non-HMPL whats the risk Anonymous
SMQ, CRCM Offline
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Between the lines
OP - VERY simplified answer here.
If it's HPML, you have to escrow - don't violate this one.
If you dot all i's, and document QM, you won't have to do the HPML appraisal.
The HPML appraisal is performed by a certified appraiser and includes an interior inspection, MUST be delivered to applicant 3 days before closing.

This is the very quick and dirty, there are some exceptions for mobile homes, etc. If you can explain better what you mean by "don't fully comply" we can give you a better answer.
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#2188077 - 08/06/18 01:28 PM Re: HPML vs. Non-HMPL whats the risk Anonymous
RR Joker Offline
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^^^ only if you are required to escrow and that will depend on your banks market/size.
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