---
title: "The Mortgage Life Cycle: Higher-Priced Mortgage Loans"
description: Compliance in mortgage applications and loan cycles. Determining if the loan is a Higher-Priced Mortgage Loan (HPML), subject to specific obligations.
---

[Banker's Compliance Consulting Blog ](https://blog.bankerscompliance.com/en)

# [The Mortgage Life Cycle: Higher-Priced Mortgage Loans](https://blog.bankerscompliance.com/en/the-mortgage-life-cycle-higher-priced-mortgage-loans)

 Written by [Jerod Moyer](https://blog.bankerscompliance.com/en/author/jerod-moyer) | Dec 14, 2023 8:20:24 PM

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](https://www.consumerfinance.gov/ask-cfpb/what-is-a-higher-priced-mortgage-loan-en-1797/)). 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](https://www.ffiec.gov/ratespread/aportables.htm)), 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

 

[View full post](https://blog.bankerscompliance.com/en/the-mortgage-life-cycle-higher-priced-mortgage-loans)

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