We are an Illinois national bank with a consumer home mortgage loan made in July 2010. The loan has an escrow account and the balance in now paid down 65% of the original note amount. Do we need to send the Illinois Escrow Decline Notice (IED) now or wait until it is 5 years old? Previously we sent IED notices after one year - now its 5 years. BTW, the account does not have any other defaults.
We have questions about mobile homes (no real estate) loans. Most of the rates for these type of loans are higher. In most cases the APOR is over the 1.5% making those loans HPML. Is there a separate APOR chart for mobile homes? or are all rates found FFIEC website for all types of loans.
What is the difference between a loan qualifying as a Small Creditor (rural and underserved) QM that qualifies as high priced when >3.5% and a loan that qualifies as an HPML when greater than >1.5%? Which parameters do we follow?
We are making a loan in the amount of $4500 for one year against the borrowers primary residence for the purpose of paying delinquent real estate taxes. The rate will be 7.50% and total fees will be less than $528. The loan is not an HPML, but what about HOEPA? The APR will be over the 8.00% plus treasury but my fees will be less than $528.00. Is there any threshold for a loan amount to be exempt from HOEPA. Please advise.
Assuming your interest rate is locked at application and your initial APR is below HPML trigger, if loan fees change causing the closing APR to increase (no change in rate) what APOR index date do you use to determine if you have an HPML? I understood it to be the date the rate is locked or set, but now I'm hearing you also have to verify the closing APR to see if you have a HPML?
Does the CFPB final rule on the Ability to Repay and Qualified Mortgage Standards only apply to HPML or all Residential Mortgage Loans?
I know that principal dwelling on 25 acres or more is exempt from RESPA, but do you still consider it as a higher-priced mortgage loan under REG Z or can we treat it like a commercial loan?
Customer is using his existing primary residence as a down payment to purchase a new primary residence. Would the down payment loan and the purchase money loan both fall under the HPML guidelines?
What if make an HPML and the borrower can't make the balloon payment? Is that "prohibited" with fines and penalties or what is the hammer not to do that?
I have an in-house first mortgage 5-year balloon that is classified as a HPML. My LTV is 40% and borrower wants to waive escrows. Can he?