How do I know if a loan is a HOEPA Loan for the purpose of HMDA?
Posted By: raitchjay
Re: HOEPA Status for HMDA - 04/12/10 03:56 PM
There's a HOEPA worksheet that i'm not computer savvy enough to link for you.....check out Section 32 of Reg Z. Basically, if the APR for your loan exceeds the comparable treasury rate for the term of your loan by 8 points for a first lien or 10 points for a 2nd lien; OR if the points and fees for the loan exceed 8% of the total loan amount (or a minimum amount which is updated annually...it's somewhere in the neighborhood of $537 maybe?). If either of those scenarios are true, then you have a HOEPA loan which triggers disclosure requirements that you should be aware of. Review Section 32 carefully. (One last thing...if your APR is ok, the sale of credit life or a similar product is USUALLY what would trigger the points and fees coverage. For us at least, no other fees ever come close by themselves, without credit life, to triggering the 8%). Hope this helped.
The HOEPA worksheet tool can be found on BOL's lenders tools page!