On a refinanced HPML, is it necessary to verify the borrowers' bank accounts (we know it's necessary on a purchase transaction for their down payment)?
We have a loan for a customer to purchase two lots which he plans to construct his homestead on in the next year. Does this fall under HPML regs? Do we have to provide early disclosures?
Does the loan have to be new construction for 12 months or less to not qualify for HPML status? If the construction is complete on their primary homestead (and we the bank held the interim 12 month construction loan) and now want to do a 12-month temporary term out of the current debt to start receiving P and I payments, does this qualify for HPML? The intention is to have perm conventional financing pay us off within the next 12 months.
We have a refinance that will be HPML that not only has the customers residence, but also 4 rentals. In calculating the escrow, would we include the 4 rentals?
We make loans on manufactured homes, where the borrowers lease the land on which the home rests. We do escrow if the loan qualifies as an HPML. But do we have to also send out an Initial Escrow Account Disclosure Statement? 1026.35(b)(3) makes no mention of the statement. There is a reference in 1026.35((b)(3)(i)(2)of the Commentary, mentioning RESPA and the administration of escrow accounts, yet RESPA doesn't apply to these types of manufactured home loans. What to do?
I'm confused on the definition of a principal dwelling with respect to HPML. I have a loan to purchase a principal residence, secured by that residence as well as the home they currently live in. Term is 3 years with a balloon, so it isn't exempt. Is the home they're purchasing considered to be their current primary residence, or would the residence they currently own and will live in until the purchase is finalized be considered their current primary residence? I'm not sure which home should fall under the HPML "test."
Can you charge a $10 minimum finance charge on an HPML? The note is written such that there is no prepayment penalty but there is a min. finance charge of $10 - practically speaking, would only be used if customer paid off loan just a couple days from its closing.
Do you know where I might go or who I would contact to ask questions concerning the High Priced Mortgage Loan requirement? We have a first mortgage loan that re-prices every 60 months with a 30 year maturity. The loan is based on WSJP + index. The parameters set up in the APOR do not fit our loan type?
Our bank has an existing balloon loan that will mature December 31, 2011. If at maturity, the bank renews this loan to continue the original amortization schedule, will this loan be subject to HPML limits? I've seen an earlier response indicating renewals are not subject to HPML's however, in speaking w/ a Fed Examiner he indicated that it was subject to HPML. Can you point us in the right direction in the reg showing us that renewals are not subject to HPML?
If the rate spread on a 2nd home is greater than the 1.5; are you required to escrow taxes and insurance on a 2nd home (not primary residence)?