3916733
Description
Mind Map by andrea.browne, updated more than 1 year ago
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Created by andrea.browne
over 8 years ago
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HOEPA/part of TILA
- Home Ownership and Equity Protection Act
- Sometimes referred to as Section 32 loans
- Exempt from the provisions of HOEPA
- Reverse Mortgage Loans, Loans
used to finance the initial
construction of a dwelling, Loans
originated by a housing finance
agency is the creditor, Loans
originated by the USDA
- Reverse Mortgage Loans, Loans
used to finance the initial
construction of a dwelling, Loans
originated by a housing finance
agency is the creditor, Loans
originated by the USDA
- HOEPA also regulates Appraisal Practices
- Exempt from the provisions of HOEPA
- Sometimes referred to as Section 32 loans
- Applies to High-Cost Mortgages
- APR Threshold, which differs for first-lien and sobordinate-lien mortgages
- A points and fees threshold
- A prepayment penalty threshold
- Above the average prime offer rate for a comparable transaction
- Thresholds for loans of
$20,391 or more: The
threshold is triggered if the
points and fees exceed 5% of
the loan amount
- Threshold for loans of less than
@20,391: The threshold is triggered if
the points and fees exceed the lesser
of 8% of the total loan amoun or
$1,020
- Threshold for loans of less than
@20,391: The threshold is triggered if
the points and fees exceed the lesser
of 8% of the total loan amoun or
$1,020
- A prepayment penalty threshold
- First-lien
mortgages: A
first lein home
loan is a high
cost mortgage if
APR is 6.5
- a subordinate-lien mortgages: a subordinate-lien home
loan is a high-cost mortgage if its APR is 8.5 percentage
points above the average prime offer rate for a
comparable transaction
- A points and fees threshold
- APR Threshold, which differs for first-lien and sobordinate-lien mortgages
- Special HOEPA disclosure, HOEPA loans
must include a special disclosure that states:
You are not required to complete this
agreement merely because you have
received these disclosures or have signed a
loan application. If you obtain this loan, the
lender will have a mortgage on your home.
You could use your home, and any money
you have put into it, if you do not meet your
obligations under the loan.
- Recipients fo the
disclosure: Any
consumer who is
primarily liable on
the obligation,
Those with a right
to rescind the
transaction
- Due 3 business days prior to the comsummation
- Due 3 business days prior to the comsummation
- Consumers must complete
counseling with a HUD approved
counselor, creditors are allowed
to pay counseling fees
- Recipients fo the
disclosure: Any
consumer who is
primarily liable on
the obligation,
Those with a right
to rescind the
transaction
- Ability to Repay Rule is required to comply with HOEPA
- For open ended loans there is a presumption of complience
- For open ended loans there is a presumption of complience
- Prohibited Lending Terms: Ballon Payments,
Negative amortization, advance payments,
increased interest rates after default,
Improperly calculated rebates, prepayment
penalties, acceleration of debt
- Prohibited lending practices: Direct payments to
home improvement contractors, loan flipping,
financing points and fees, lending without regard to
repayment ability, lending without pre-loan
counseling, and recommending default, charging loan
modification or dererral fees, charging late fees, and
charging fees for payoff statements
- Prohibited lending practices: Direct payments to
home improvement contractors, loan flipping,
financing points and fees, lending without regard to
repayment ability, lending without pre-loan
counseling, and recommending default, charging loan
modification or dererral fees, charging late fees, and
charging fees for payoff statements
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