Jen’s Cheat Sheet HCML (High Cost Mortgage Loans)

Question 1

High Cost Mortgage Loans HCML - #32 (HOEPA)

Has BAPS

What is BAPS?

Answer 1

BAPS

B -No Ballon payment (Most Balloons prohibited)

A-Has an ATR

P-No Prepayment penality

S-Must Speak to HUD counselor

Can include variable interest rates

Question 2

HCML - #32 BAPS

High Price Mortgage Loan

What is the % of the First Lien for 50K or more?

Answer 2

HCML - #32 BAPS

High Price Mortgage Loan

6.5% first lien $50K+

Question 3

HCML - #32 BAPS

High Price Mortgage Loan

What is the % of the First Lien for 50K or less?

Answer 3

HCML - #32 BAPS

High Price Mortgage Loan

8.5% First Lien $50k or less

Question 4

HCML - #32 BAPS

High Price Mortgage Loan

What is the % for a first subbordinate liens?

Answer 4

HCML - #32 BAPS

High Price Mortgage Loan

8.5%for a first subordinate liens

Question 5

BAPS

B- No Ballons

A- Ablity to repay (ATR)

P- No prepayment penalties

S- Speak to HUD counselor