I don't anticipate our institution doing many HOEPA loans, but just when I think I have most everything figured out, I have more questions.
1. According to Reg Z, real estate related fees include amounts required to be paid into escrow. I have a loan in front of me in which 9 months of property tax is required in escrow. Does this have to be included in the formula for the fee trigger? If so, then wouldn't refinance loans done later in the year be more susceptible to being a HOEPA loan than ones originated at the beginning of the year (since fewer months of property taxes would be required in escrow)?
2. Since there is a 3 day ROR on refinance loans, does this mean that if the HOEPA disclosures are given at loan closing, that will meet the 3 day requirement? They're supposed to be provided 3 days before consummation of the loan. Is the loan consummated at loan closing or because the customer doesn't have access to the funds until 3 business days after closing, is the loan consummated then?
3. We have a wholly owned mortgage company subsidiary. All mortgage loans are closed in its name. We buy these for a fee (called a service release premium). The bank pays all of this, the customer pays nothing. Would this have to be included in the formula? Is it considered a broker fee? My opinion is that it wouldn't be included, because the customer is paying none of this.
Any input would be appreciated. Thanks.
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