Under HOEPA, a first-lien mortgage is considered a high-cost mortgage if the APR exceeds the average prime offer rate (APOR) by more than:
Correct Answer
A) 6.5 percentage points
Under HOEPA, a first-lien mortgage is considered high-cost if the APR exceeds APOR by more than 6.5 percentage points. For subordinate liens, the threshold is 8.5 percentage points.
Why This Is the Correct Answer
Under HOEPA, a first-lien mortgage is considered high-cost if the APR exceeds APOR by more than 6.5 percentage points. For subordinate liens, the threshold is 8.5 percentage points.
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