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Escrow for HPML

Home Forums Truth in Lending/ Regulation Z Escrow for HPML

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  • #2610
    BNach
    Member

    Can you verify that the new escrow rule applies to first lien, HPML, secured by a consumer’s principal dwelling? The distinction that I am making is that escrow would not apply to all HPML’s since a loan secured by a subordinate lien is an HPML if the APR exceeds the APOR by 3.5%, correct?

    #3038
    jholzknecht
    Keymaster

    Under the present rules, and under the revised rules that are effective June 1, 2013, both first lien and subordinate lien transactions may be HPMLs, but the escrow rules only apply to first lien HPMLs secured by the consumer’s principal dwelling. A first lien transaction is a HPML if the the APR exceeds the APOR by 1.5 or more percentage points.

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