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Home › Forums › Closed Forums › Buying and Selling RE › New Govt Regulation: HIGHER PRICED MORTGAGE LOANS (HPML) !!!

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  • September 18, 2009 at 9:00 PM #16367
    HLS
    Participant

    Such Joy !! New regulations created by the govt to “protect” the consumer…. just announced!!

    HIGHER PRICED MORTGAGE LOANS (HPML) – EFFECTIVE OCTOBER 1, 2009
    Higher Price Mortgage Loan (HPML) rules become effective for all loans with an application taken on
    or after October 1, 2009. We would like to announce the following changes in response to the
    new Section 35 HPMLs.

    DEFINING HIGHER PRICES MORTGAGE LOANS (HPML)
    Higher Priced Mortgage Loans are defined as consumer-purpose, closed-end loans secured by a
    consumer’s principal dwelling that have an annual percentage rate (APR) equal to or greater than
    the Average Prime Offer Rate (APOR) by 1.5 percentage points for first-lien loans, or 3.5 percentage
    points for subordinate-lien loans for a comparable transaction.

    For example:

    September 18, 2009 at 9:06 PM #458744
    HLS
    Participant
    September 18, 2009 at 9:06 PM #459538
    HLS
    Participant
    September 18, 2009 at 9:06 PM #459344
    HLS
    Participant
    September 18, 2009 at 9:06 PM #459271
    HLS
    Participant
    September 18, 2009 at 9:06 PM #458935
    HLS
    Participant
    September 18, 2009 at 9:09 PM #459353
    HLS
    Participant

    ?

    September 18, 2009 at 9:09 PM #459548
    HLS
    Participant

    ?

    September 18, 2009 at 9:09 PM #459281
    HLS
    Participant

    ?

    September 18, 2009 at 9:09 PM #458945
    HLS
    Participant

    ?

    September 18, 2009 at 9:09 PM #458753
    HLS
    Participant

    ?

    September 18, 2009 at 9:12 PM #459286
    HLS
    Participant

    If the APR on a first-lien transaction is equal to or greater than APOR + 1.5%, the loan will be
    considered a Higher Priced Mortgage Loan.

    If the APR on a subordinate-lien transaction is equal to or greater than APOR + 3.5%, the
    loan will be considered a Higher Priced Mortgage Loan.

    The Average Prime Offer Rate (APOR) is published by the Board of Governors of the Federal
    Reserve System once per week and is posted on the Federal Financial Institutions Examination
    Council’s website. To determine if a loan is a Higher Priced Mortgage Loan, you must utilize the
    APOR published the week the interest rate is locked.

    ELIGIBLE PRODUCTS
    Certain products may be closed as higher priced mortgage loans. If the APR on a loan falls into the
    HPML category, the product must be eligible in order to close and fund. Please refer to the ineligible
    product section to determine if a product is eligible or ineligible.
    Please note, in April 2010, transactions deemed to be Higher Priced Mortgage Loans will not be
    allowed to have an escrow waiver.

    INELIGIBLE PRODUCTS
    Loans with the following characteristics are not eligible to close as a Higher Priced Mortgage Loan. If
    the product is ineligible, the APR must be reduced in order to close and fund. These loans must
    close below the maximum allowable APR so that the loan is not considered HPML.

    Adjustable Rate Mortgage (ARM) – Conventional & Government
    1/1 ARM
    3/1 ARM
    5/1 ARM
    FHA loans
    VA Interest Rate Reduction Refinance Loans (IRRRL)
    Freddie Mac Relief Refinance
    Any loan with a pre-payment penalty

    This has nothing to do with credit scores, loan amount, down payment or equity, but can complicate getting a loan and a lock expiration… Do you feel safer now ???… HLS

    September 18, 2009 at 9:12 PM #459553
    HLS
    Participant

    If the APR on a first-lien transaction is equal to or greater than APOR + 1.5%, the loan will be
    considered a Higher Priced Mortgage Loan.

    If the APR on a subordinate-lien transaction is equal to or greater than APOR + 3.5%, the
    loan will be considered a Higher Priced Mortgage Loan.

    The Average Prime Offer Rate (APOR) is published by the Board of Governors of the Federal
    Reserve System once per week and is posted on the Federal Financial Institutions Examination
    Council’s website. To determine if a loan is a Higher Priced Mortgage Loan, you must utilize the
    APOR published the week the interest rate is locked.

    ELIGIBLE PRODUCTS
    Certain products may be closed as higher priced mortgage loans. If the APR on a loan falls into the
    HPML category, the product must be eligible in order to close and fund. Please refer to the ineligible
    product section to determine if a product is eligible or ineligible.
    Please note, in April 2010, transactions deemed to be Higher Priced Mortgage Loans will not be
    allowed to have an escrow waiver.

    INELIGIBLE PRODUCTS
    Loans with the following characteristics are not eligible to close as a Higher Priced Mortgage Loan. If
    the product is ineligible, the APR must be reduced in order to close and fund. These loans must
    close below the maximum allowable APR so that the loan is not considered HPML.

    Adjustable Rate Mortgage (ARM) – Conventional & Government
    1/1 ARM
    3/1 ARM
    5/1 ARM
    FHA loans
    VA Interest Rate Reduction Refinance Loans (IRRRL)
    Freddie Mac Relief Refinance
    Any loan with a pre-payment penalty

    This has nothing to do with credit scores, loan amount, down payment or equity, but can complicate getting a loan and a lock expiration… Do you feel safer now ???… HLS

    September 18, 2009 at 9:12 PM #459358
    HLS
    Participant

    If the APR on a first-lien transaction is equal to or greater than APOR + 1.5%, the loan will be
    considered a Higher Priced Mortgage Loan.

    If the APR on a subordinate-lien transaction is equal to or greater than APOR + 3.5%, the
    loan will be considered a Higher Priced Mortgage Loan.

    The Average Prime Offer Rate (APOR) is published by the Board of Governors of the Federal
    Reserve System once per week and is posted on the Federal Financial Institutions Examination
    Council’s website. To determine if a loan is a Higher Priced Mortgage Loan, you must utilize the
    APOR published the week the interest rate is locked.

    ELIGIBLE PRODUCTS
    Certain products may be closed as higher priced mortgage loans. If the APR on a loan falls into the
    HPML category, the product must be eligible in order to close and fund. Please refer to the ineligible
    product section to determine if a product is eligible or ineligible.
    Please note, in April 2010, transactions deemed to be Higher Priced Mortgage Loans will not be
    allowed to have an escrow waiver.

    INELIGIBLE PRODUCTS
    Loans with the following characteristics are not eligible to close as a Higher Priced Mortgage Loan. If
    the product is ineligible, the APR must be reduced in order to close and fund. These loans must
    close below the maximum allowable APR so that the loan is not considered HPML.

    Adjustable Rate Mortgage (ARM) – Conventional & Government
    1/1 ARM
    3/1 ARM
    5/1 ARM
    FHA loans
    VA Interest Rate Reduction Refinance Loans (IRRRL)
    Freddie Mac Relief Refinance
    Any loan with a pre-payment penalty

    This has nothing to do with credit scores, loan amount, down payment or equity, but can complicate getting a loan and a lock expiration… Do you feel safer now ???… HLS

    September 18, 2009 at 9:12 PM #458757
    HLS
    Participant

    If the APR on a first-lien transaction is equal to or greater than APOR + 1.5%, the loan will be
    considered a Higher Priced Mortgage Loan.

    If the APR on a subordinate-lien transaction is equal to or greater than APOR + 3.5%, the
    loan will be considered a Higher Priced Mortgage Loan.

    The Average Prime Offer Rate (APOR) is published by the Board of Governors of the Federal
    Reserve System once per week and is posted on the Federal Financial Institutions Examination
    Council’s website. To determine if a loan is a Higher Priced Mortgage Loan, you must utilize the
    APOR published the week the interest rate is locked.

    ELIGIBLE PRODUCTS
    Certain products may be closed as higher priced mortgage loans. If the APR on a loan falls into the
    HPML category, the product must be eligible in order to close and fund. Please refer to the ineligible
    product section to determine if a product is eligible or ineligible.
    Please note, in April 2010, transactions deemed to be Higher Priced Mortgage Loans will not be
    allowed to have an escrow waiver.

    INELIGIBLE PRODUCTS
    Loans with the following characteristics are not eligible to close as a Higher Priced Mortgage Loan. If
    the product is ineligible, the APR must be reduced in order to close and fund. These loans must
    close below the maximum allowable APR so that the loan is not considered HPML.

    Adjustable Rate Mortgage (ARM) – Conventional & Government
    1/1 ARM
    3/1 ARM
    5/1 ARM
    FHA loans
    VA Interest Rate Reduction Refinance Loans (IRRRL)
    Freddie Mac Relief Refinance
    Any loan with a pre-payment penalty

    This has nothing to do with credit scores, loan amount, down payment or equity, but can complicate getting a loan and a lock expiration… Do you feel safer now ???… HLS

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