From the time you receive a mortgage loan application (sometimes even before) to when that loan is ultimately denied or originated (sometimes even after), there are a lot of different compliance requirements that can come into play. Keeping track of everything during the life cycle of that mortgage application or loan can be a challenge. One thing you need to determine is whether the application/loan is Higher-Priced Mortgage Loan (HPML). If it is, what does that mean and, more importantly, what do you need to do?
A HPML is any consumer purpose, closed-end loan secured by a consumer’s principal dwelling where the APR is greater than or equal to the “Average Prime Offer Rate” (APOR), plus a margin, for a comparable transaction as of the date the interest rate is set (or locked) based on the lien status. Loans that meet HPML status are subject to escrow and appraisal-related requirements.
Jerod explains more in the video.
Published
2023/12/14