As to a loans HOEPA status, are second homes and vacation homes considered
not applicable for HOEPA which would make the status code 3 on the HMDA LAR
Should HOEPA be tested at the time of a Loan Estimate? Our system will let us test for it at time of Closing Disclosure, but should it actually test at LE time?
1026.34 cites a prohibition on structuring loans to evade requirements. Would this include reducing the interest rate on a loan to avoid HOEPA? If we can do this, are there any fair lending or UDAAP
When the bank is refinancing a loan and the loan is subject to HOEPA, the customer has to go to consuling. After the LE is given, the customer comes back and says he cannot afford the $100.00 consuling fee. Can that fee be added as a fee charge or should it be added to the amount requested? If added to the amount requested, does this trigger a right of rescission?
Where can I find a HOEPA Worksheet?
We made a loan in 2011 to a customer to purchase a property. The property had a residence and a commercial mechanics
garage with living quarters in it. At the time he bought this, he rented the house to his aunt and lived in the garage when he was in Missouri. He didn't reside here full time at that point. So we did this loan on our commercial side. We just found out his aunt has passed and he has been living full time in Mo. in the house. So knowing this, due to HOEPA or HPML etc ,are we required to move it to consumer side? Also where can I get further training on HOEPA and HMPL please?
How do I calculate the high cost mortgage limits for a HELOC? I see the APOR sheet published online but I am not sure what term to look at. Our HELOC is a 10 year draw with a 10 year repay. Am I looking at the 10 year column or the 20 year column?
If our lending policy prohibits making HOEPA mortgages what is the best denial reason and is the policy in violation of any regs?
Am I reading 1026.32 correctly that if you have a loan of $50,000 or more secured only by a first-lien on a manufactured home, it is exempt from high-cost (a/k/a HOEPA) requirements?
Beginning in January 2014 we will need to check our HELOC loans for HOEPA coverage. We use the one year treasury as an index (currently .125%) with a 2.75% margin, floor of 5% & ceiling of 12%. The rate is subject to change monthly. It is my understanding that I will add my index to the margin to determine that APR for HOEPA test purposes. I am thinking I would use the floor because that is higher than the index + margin. I do not see that there is an APOR for 1 month, the shortest duration I see is one yr. Any thoughts on what APOR I would use. Does it matter what the ceiling is for the HOEPA test?