I am ready to pull what's left of my hair out. I keep going back and forth, so I've decided to ask for help. I have searched through previous threads and just when I think that I understand, I find another that makes me question myself.

Loan for primary residence matures, customer's want to refinance. While inputing information, software claims that this is a HOEPA loan and can proceed no farther due to loan is for 36 mos. There is no new money in the refinance to the customer.

Is this exempt from HOEPA because it is an RMT? OR

Is it a HOEPA loan, but cannot be done because of the limitations?

Thank you in advance.

It's not the 36 months, it's the APR (check your rate and fees). It sound HOEPA-eligible to me as it is no longer a purchase loan.

It is not an RMT as it is a refinance.

If this transaction involves a balloon payment, the loan cannot have a term of less than five years.

226.32(d) Limitations. A mortgage transaction subject to this section shall not include the following terms:

(1)(i) Balloon payment. For a loan with a term of less than five years, a payment schedule with regular periodic payments that when aggregated do not fully amortize the outstanding principal balance.

Savannah and Randy,

Thank you, I fully understand now. Going through my searches, the RMT is what was throwing me off.