Defining 'Term' in the APOR Chart

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Question:

Concerning HPMLs, when using the APOR chart provided by the FFIEC, the "term" indicates the number of years until maturity of the note, not the number of years for which the loan is amoratized, as in a twenty year amortization with a five year call. Am I correct with this statement?

Answer:

Yes, you are correct. The exception is an ARM loan. In that case you enter the number of years to the first change date.

First published on BankersOnline.com 10/25/10