Refinancing Loan: HPML Rules Apply?

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Question:

I have a loan application dated 9-17-2010 to refinance a manufactured home loan on a leased lot. There will be no new money other than closing costs. I am refinancing our loan that ballooned after a five year term. The rate is 7.95% fixed for four years, then with a variable amortizing term of thirteen years. Must I follow the higer priced mortgage rules since loan did not close before 10-1-10? The customer does not want to escrow tax and insurance.

Answer:

You have to follow all the HPML requirements except for mandatory escrow. The mandatory escrow requirements for manufactured homes only apply to applications received on or after 10/1/10.

First published on BankersOnline.com 11/22/10