A borrower is obtaining a first-lien mortgage with an APR of 6.2% when the APOR is 4.5%. Which HPML requirement applies to this loan?
Correct Answer
C) Both escrow account and appraisal requirements
The APR (6.2%) exceeds the APOR (4.5%) by 1.7 percentage points, making this an HPML. Both escrow account requirements under Section 1026.35(b) and appraisal requirements under Section 1026.35(c) apply to HPMLs.
Why This Is the Correct Answer
The APR (6.2%) exceeds the APOR (4.5%) by 1.7 percentage points, making this an HPML. Both escrow account requirements under Section 1026.35(b) and appraisal requirements under Section 1026.35(c) apply to HPMLs.
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