12/17/2023
Are short term loans (loans that will not be satisfied and replaced with permanent financing; paid out in full instead) subject to HOEPA and HPML?
I see that temporary loans and bridge loans -12 months or less (loans that will be satisfied and replaced with permanent financing) are not subject to HPML.
I believe temporary and short term loans are subject to HOEPA though.
12/04/2022
Under the new QM/ATR rules that take effect on Oct 1, 2022, when does a loan become HPML? Is it still based on the 1.5%-1st lien, 3.5%-2nd lien, or does it now go by the new thresholds in the price-based tiers, for instance, 1st lien is less than $68,908 has a 6.5% threshold between the APR & APOR?
03/10/2019
With the new rate spread calculator, I am wondering if the APOR spreadsheet will it no longer be updated with each Monday? Also, I am getting conflicting answers within the forum: as a small servicer, is there an exception to the threshold of 3.5% on first liens or does the rule apply across the board whether you are a small creditor or not: 1.5% for first lien and 3.5% for subordinate liens to determine the HPML status?
02/10/2019
I have a home improvement loan for 6 months. On the home improvement loan is it really considered a HPML and I should do Escrow?
03/18/2018
It is my understanding that the HPML threshold for the rate spread is the same across the board; 1.5% for first liens and 3.5% for subordinate liens. As a small creditor, is there an exception that applies, making our threshold 3.5% regardless of lien position?
I found this in one of the answers within a forum and don't want to misinterpret it:
"As for the threshold for determining a higher-priced covered transaction, small creditors are unique in that they receive the 3.5% threshold for first lien small creditor and balloon payment QM's."
06/18/2017
A borrower is waiting on a divorce settlement (half equity in the existing marital residence). We are willing to loan the funds until this money comes in on a 9 month, interest only note. Is this a bridge, since the funds are from the marital residence sale or temporary? And the fees/costs exceed 3% of the loan amount which raises the question of how to treat this as an HPML or not, and is it subject to HPML requirements for appraisals?
01/29/2017
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?
10/02/2016
I have a borrower that is doing a debt consolidation loan. Part of the collateral consists of his parents' ag land that also includes a house. There is a mortgage for the full value of the property and currently there are other loans that add up to about 40% of the mortgage amount. This loan would be using the same mortgage and not filing a new mortgage. Would the HPML escrow rule come into place if we are using a home equity rate that is going over the 1.50% threshold since there is only 1
mortgage on the property. Also - the borrower and the owner of the collateral are 2 different people - if that makes a difference.
08/07/2016
We are a small lender. If we have a mortgage that is an HPML, do we have to do full appraisals on every mortgage loan? Typically we do in-house evaluations on RE loans that are $150,000 which are the typical guidelines and order full appraisals when the loan exceeds $250,000.00
05/29/2016
I need examples of residential improved real estate or mobile homes that are covered under the Final Rule effective Jan 1, 2016 for the escrow of flood premiums. HPML requirements cover the PRIMARY residence or dwelling for which already escrow.