For a subordinate lien mortgage loan, what is the APR threshold above the Average Prime Offer Rate that triggers Higher-Priced Mortgage Loan requirements?
Correct Answer
C) 3.5 percentage points
Under TILA Section 1026.35(a)(1)(ii), a subordinate lien mortgage loan is considered an HPML when the APR exceeds the APOR by 3.5 percentage points or more.
Why This Is the Correct Answer
Under TILA Section 1026.35(a)(1)(ii), a subordinate lien mortgage loan is considered an HPML when the APR exceeds the APOR by 3.5 percentage points or more.
More Federal Laws Questions
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Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A lender's policy states that loans for properties in ZIP codes with median incomes below $40,000 require a minimum 25% down payment, while loans in higher-income ZIP codes require only 10% down. If these ZIP codes correlate strongly with racial composition, this practice is:
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