2016 High Cost Mortgage Threshold

The Points & Fees Test thresholds used to determine whether a loan is a High Cost Mortgage (HCM) will decrease for 2016. A loan is considered a HCM if: 

• The loan amount is at least $20,350 AND the points & fees exceed 5% of the total loan amount. This is down from the 2015 amount of $20,391.

OR

• The loan amount is less than $20,350 and the points & fees exceed the lesser of 8% of the total loan amount or $1,017. This is down from the 2015 amount of $1,020.

As a reminder, there are 3 separate “tests” to determine HCM status (an APR test, a points & fees test and a prepayment penalty test) and if a loan meets the criteria of any one of the 3 tests, it is a HCM. The points and fees test is the only test where thresholds adjust annually.

Published
2015/12/25
Amy Kudlacek
Amy Kudlacek

Amy Kudlacek

Amy brings many years of banking and compliance experience to Banker’s Compliance Consulting. She has worked for both large and small financial institutions and spent time working in every area of a bank. She started out as a teller in college and eventually became a branch manager. Her love, however, was always compliance. Amy began her career with Banker’s Compliance Consulting in 2000. Her knowledge and experiences have allowed her to develop a well-rounded and practical approach to regulatory compliance. Amy is CRCM certified, has a Bachelors Degree in Business Administration and is a graduate of the ABA Compliance School. Amy & her husband have two children at home and stay busy following their activities. They spend a lot of time in the bleachers!

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