Skip to content

First Lien Home Equity Rates Measured Against APOR

Answered by: 

Question: 
Why are first lien home equity rates being measured against a residential Average Prime Offer Rate (APOR) when these are two different products? It is hard to explain to a borrower that their home equity rate is priced higher than the average rate of an entirely different product, thus resulting in an escrow requirement.
Answer: 

Sounds like an internal pricing problem to me. Why would a home equity loan on a property that is free and clear be more risky than a loan in a purchase transaction?

First published on 08/18/2019

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics