What qualifies as HPML?

A higher-priced mortgage loan (HPML) is a mortgage with an annual percentage rate (APR) that’s higher than the average prime offer rate (APOR) offered to well-qualified borrowers.

What section of Regulation Z sets forth requirements for loans that meet higher priced mortgage loan criteria?

Subpart E (sections 226.31 through 226.36) contains special requirements for mortgages that fit the criteria in § 226.32(a) (―high-cost mortgages ), § 226.33(a) (―reverse mortgages ), and § 226.35(a) (―higher-priced mortgage loans ), as well as loans secured by a consumer’s principal dwelling.

How does Tila define a higher priced mortgage loan?

A mortgage loan is “higher-priced” if: It is a first-lien mortgage with an annual percentage rate (APR) that exceeds.  the Average Prime Offer Rate (APOR) by 1.5 percentage points or more. It is a first-lien mortgage with an APR that exceeds the APOR by 2.5.

What is prohibited on a high cost mortgage?

(vi) Steering prohibited. A creditor that extends a high-cost mortgage shall not steer or otherwise direct a consumer to choose a particular counselor or counseling organization for the counseling required under this paragraph (a)(5). Official interpretation of 34(a)(5)(vi) Steering prohibited.

Can a HPML be a QM?

These types of QM’s can be first-lien HPML’s and still qualify for the safe harbor. First-lien Small Creditor Portfolio QMs and Balloon Payment QMs with an APOR rate spread of 1.5 or more must still follow the HPML rules.

What loans are excluded from HPML?

The rule exempts from the HPML escrow requirement any loan made by a bank or credit union and secured by a first lien on the principal dwelling of a consumer if: the institution has assets of $10 billion or less (as of Dec. 31 in the preceding year);

What is the difference between section 32 and 35?

HOEPA Section 32 loans must also meet the same APR and APOR criteria as Section 35 loans, but Section 32 loans also include these three additional criteria, which do not apply to Section 35 loans: The APR is higher than the APOR by more than 6.5 percent.

Can an HPML be a qualified mortgage?

In the January 18, 2013 final rule, the Agencies recognized an exemption for HPMLs that met the Qualified Mortgage (QM) standards in section 1026.43(e) of Regulation Z.

What is high cost test?

Points and Fees Test A mortgage is also considered to be a high-cost mortgage if its points and fees exceed: 5% of the total loan amount if the loan amount is equal to or more than $22,969 (2022), or. 8% of the total loan amount or $1,148 (whichever is less) if the loan amount is less than $22,969.

Which of the following is not a characteristic of an HPML?

Which of the following is not a characteristic of an HPML? The answer is it has an APR that exceeds the rate for Treasury securities with a comparable rate of maturity by 6.5 percentage points.

Are there any self-study and online mortgage loan compliance training courses?

Below are several self-study and online mortgage loan compliance training courses for various topics related to mortgage lending. Simply click on the link for specifics and recommended mortgage loan compliance training courses on that topic.

What kind of training does the mortgage Training Center offer?

The Mortgage Training Center offers several TRID, TILA, and UDAAP training courses that help mortgage professionals to better understand and comply with their requirements.

What will I learn in a commercial loan training course?

By taking one of our commercial loan training courses, you will learn about the entire loan process by which a commercial real estate loan is marketed, underwritten, approved, documented, closed, and monitored.

What is a certified mortgage processor certification?

The “Certified Mortgage Processor” is a certification program offered through the National Association of Mortgage Processors. It covers a variety of key mortgage processor training areas to help you improve your mortgage processing skills.