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#1358302 - 03/16/10 06:33 PM HPML
RUKiddingMe Offline
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RUKiddingMe
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Posts: 127
Do 'higher priced mortgage loans' include a loan where the borrower is not the collateral owner?

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Lending Compliance
#1358311 - 03/16/10 06:41 PM Re: HPML RUKiddingMe
swiggles Offline
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swiggles
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.....consumer credit transaction secured by the consumer's principal dwelling....

If the borrower doesn't own it, it can't be the borrower's principal dwelling......assuming the apostrophe "s" denotes possession/ownership.
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#1359449 - 03/17/10 09:08 PM Re: HPML swiggles
RUKiddingMe Offline
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RUKiddingMe
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Posts: 127
We see this fairly frequently:

Parents own the home that their son lives in; parents allow son to use the home (his primary dwelling) as collateral on a consumer purpose loan.

I believe this could still constitute an HPML transaction if the pricing thresholds are exceeded, correct?
Last edited by RUKiddingMe; 03/17/10 09:11 PM. Reason: I hadn't finished my thought yet!
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#1359587 - 03/18/10 03:09 AM Re: HPML RUKiddingMe
David Dickinson Offline
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David Dickinson
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Central City, NE
Most certainly.
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#1359646 - 03/18/10 12:59 PM Re: HPML David Dickinson
Dan Persfull Offline
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Bloomington, IN
I disagree.

It may be the son's residence but the dwelling is the parents dwelling and under the definition of a consumer in 226.2 they (the parents) are not consumers for the purposes of the regulation if they are not borrowers, other than for the ROR should it be their primary dwelling.

If the parents are not consumers under the regulation and the loan is secured by their dwelling then the loan is not secured by a "consumer's" dwelling.
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#1359732 - 03/18/10 02:01 PM Re: HPML Dan Persfull
swiggles Offline
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swiggles
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Originally Posted By: Dan Persfull
I disagree.

It may be the son's residence but the dwelling is the parents dwelling and under the definition of a consumer in 226.2 they (the parents) are not consumers for the purposes of the regulation if they are not borrowers, other than for the ROR should it be their primary dwelling.

If the parents are not consumers under the regulation and the loan is secured by their dwelling then the loan is not secured by a "consumer's" dwelling.


That was what I was trying to say...... smile
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#1359733 - 03/18/10 02:02 PM Re: HPML Dan Persfull
RR Joker Offline
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The Swamp
I also disagree. The son has no ownership interest in the home, therefore, although it's consumer purpose secured by the home in which he lives...he doesn't own it, so he (the consumer) is not securing it with his principal dwelling, because it's not his...he just lives there...like a renter.
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