Term
|
Definition
- Home Ownership and Equity Protection
- established 1994
- ammendment to TILA
|
|
|
Term
| TIL updates & HOEPA established 2 new forms |
|
Definition
EFFECTIVE Aug 1, 2015
- Loan Estimate Form - replaces GFE & initial TIL
- Closing Disclosure Statement - replaces HUD-1 and final TIL
|
|
|
Term
| high priced loans = section __ |
|
Definition
|
|
Term
HOEPA disclosures
(3 business days prior to closing) |
|
Definition
- APR
- the regular payment amount (including balloon payments)
- loan amount; if amount borrowed includes credit insurance premium it must state it
- for variable rate terms, the loan amount of the max monthly payment
- for a mortgage refinance, the total amount borrowerd as reflected by te face amount of the note must be disclosed.
|
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| High Priced Loans (section 35) triggers |
|
Definition
loans where the APR exceeds the average prime offer rate by
- 1.5% on the 1st
- 2.5% on the 1st (jimbo over $417K)
- 3.5% subordinate liens
|
|
|
Term
| prohibited loan terms under HOEPA |
|
Definition
- balloon payment
- negative amortization
- repayment schedule
- default interest rates
- rebate
- prepayment penalties
- demand clauses
|
|
|
Term
| escrow account (under HOEPA & high priced loans) |
|
Definition
| the rule requires the originating lender to establish and maintain an escrow (impound) account for property taxes and insurance (hazrd, flood, mortgage, etc) for a minimum of 5 yrs |
|
|
Term
|
Definition
- qualified mortgages
- temporary bridge loans
- construction loans
- manufactured homes, mobile homes and trailers
- boats that are dwellings
- 2nd appraisal requirement to facilitate loans in rural areas and other transactions
|
|
|
