Alright all you smart cookies, I need your help.
I've now seen, from a couple of highly respected sources, this statement:
"For any non-qualified mortgage that is also an HPML, any balloon payment must be included in determining the ability to repay."
I simply cannot validate this, and honestly, I disagree. Where is this coming from?
I'm well aware of the HPCT threshold for counting a balloon payment in the DTI; as well as the balloon-is-5-years-from-pymt-date inclusion... but this HPML requirement for ATR underwriting has me befuddled.
Any ideas? Thank you!
Edited to add: I really think they mean "HPCT" and not "HPML". Just want to make sure I'm not crazy... at least not about this!