Which of the following loans would be exempt from Higher-Priced Mortgage Loan requirements under TILA?
Correct Answer
C) A reverse mortgage transaction
Under TILA Section 1026.35(a)(2), reverse mortgage transactions are specifically exempt from HPML requirements. The definition of HPML excludes reverse mortgages regardless of their APR relative to APOR.
Why This Is the Correct Answer
Under TILA Section 1026.35(a)(2), reverse mortgage transactions are specifically exempt from HPML requirements. The definition of HPML excludes reverse mortgages regardless of their APR relative to APOR.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A community bank with $500 million in assets originated 75 home purchase loans, 15 refinance loans, and 10 home improvement loans secured by dwellings last year. What is their HMDA reporting obligation?
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