HPMLs Applicable to Rental Property?

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Question:

Do the higher-priced mortgages apply to first lien residential property that will be used for rental, not primary residence?

Answer:

Business purpose loans are exempt from Reg Z; therefore, exempt from the HPML requirements. HPML requirements also only apply to the consumer's primary dwelling, so even if the loan was a consumer purpose loan secured by the rental property, 226.35 would not apply.

First published on BankersOnline.com 6/07/10