For a subordinate lien mortgage to be considered high-cost under HOEPA, the APR must exceed the APOR by more than:
Correct Answer
B) 8.5 percentage points
For subordinate lien mortgages, HOEPA's APR trigger is when the APR exceeds APOR by more than 8.5 percentage points, which is 2 percentage points higher than the first-lien threshold of 6.5 percentage points.
Why This Is the Correct Answer
For subordinate lien mortgages, HOEPA's APR trigger is when the APR exceeds APOR by more than 8.5 percentage points, which is 2 percentage points higher than the first-lien threshold of 6.5 percentage points.
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A lender denies a loan application and provides an adverse action notice stating 'insufficient income.' Under Regulation B, this notice is:
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A borrower's income includes $3,000 monthly base salary, $500 monthly overtime (worked consistently for 18 months), and $800 monthly rental income from a property owned for 6 months. Under ATR requirements, what income can be considered for repayment ability?