Does HPML apply to second mortgages?

Second Lien Mortgage is a HPML if the APR is higher than 3.5% above the APOR.

What does safe harbor mean in mortgage?

qualified mortgage rules
Under qualified mortgage rules, “safe harbor” provisions protect lenders against lawsuits by distressed borrowers who claim they were extended a mortgage the lender had no reason to believe they could repay. Only certain qualified mortgages are eligible for sale in the secondary market.

What are the four types of qualified mortgages?

There are four types of QMs – General, Temporary, Small Creditor, and Balloon-Payment.

Which of the following is the least expensive type of reverse mortgage?

Single-purpose reverse mortgages are the least expensive option. They’re offered by some state and local government agencies, as well as non-profit organizations, but they’re not available everywhere. These loans may be used for only one purpose, which the lender specifies.

What triggers a high-cost mortgage?

Under the new rule, a mortgage will be considered high-cost if it is: A first mortgage with an annual percentage rate (APR) that is more than 6.5 percentage points higher than the average prime offer rate. A loan of $20,000 or more with points and fees that exceed 5 percent of the loan amount.

What is the difference between safe harbor and rebuttable presumption?

Under a safe harbor, a borrower is unable to challenge whether the lender met its ability to repay obligations. Under a rebuttable presumption, the borrower has the ability to raise a legal challenge but must overcome the legal presumption that the lender complied with this obligation.

What makes a loan safe harbor?

To qualify for the safe harbor, which is a conclusive presumption of compliance with the ability to repay rule, the APR could not exceed the APOR for a comparable transaction by (1) 1.5 percentage points or more for a first lien transaction or (2) 3.5 percentage points or more for a junior lien transaction.

What is an acceptable feature of a qualified mortgage?

Qualified mortgages must also satisfy at least one of the following three criteria: 1. The borrower’s total monthly debt-to-income (DTI) ratio must be 43 percent or less. 2. The loan must be eligible for purchase by Fannie Mae or Freddie Mac (the government-

What does safe harbor mean in a qualified mortgage?

Under qualified mortgage rules, “ safe harbor ” provisions protect lenders against lawsuits by distressed borrowers who claim they were extended a mortgage the lender had no reason to believe they could repay.

What does it mean to have a safe harbor law?

A safe harbor is a provision in a law or regulation that affords protection from liability or penalty under specific situations, or if certain conditions are met. Sometimes a safe harbor reduces liability if “good faith” is demonstrated.

When is safe harbor not available for a purchase?

Safe harbor provisions are not available if a purchase is fraudulent or manipulative in any way. For example, safe harbor is unavailable if a business is part of a scheme to influence a company’s closing price. Can I classify employees as independent contractors under safe harbor laws?

When did Minnesota pass the safe harbor law?

Minnesota was one of the first states to enact this safe harbor provision in 2011. 6 This is a highly complex area of law that you might not want to argue yourself, so consult with an attorney if you’ve stepped afoul of the law but think you might qualify for safe harbor protection.

What are the Arizona mortgage laws and regulations?

STATUS: Referred to Senate Committee on Rules. SUMMARY: This bill establishes a loan originator program within the Department of Financial Institutions. It amends Sections 6-122, 6-126, 6-901, 6-903, 6-909, 6-943 AND 6-947, Arizona Revised Statutes. Regarding licensing, this bill:

Which is an example of a safe harbor law?

A safe harbor law states that certain types of behavior are not considered violations as long as they fall under a given rule. Rule 10B-18 of the Securities Exchange Act of 1934 defines safe harbor laws. As such, safe harbor laws offer protection when people show “good faith” efforts. For example,…

How much is a fine under safe harbor law?

The landowners act in good faith without knowing about inaccuracies with the measurements. Otherwise, state law can fine landowners up to $500 for each under-reported acre. The fine amount depends on the property owner’s location. Safe harbor laws can be used in many legal areas, including: