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#1411551 - 07/02/10 06:23 PM HPML on 2nd home - escrow req'd?
Many Hats Offline
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Orlando, FL
We took an application for a residential mortgage loan/second home/purchase.

The spread is 1.66%.

Do we have to escrow for taxes & ins if it's a 2nd home?

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RESPA
#1411554 - 07/02/10 06:26 PM Re: HPML on 2nd home - escrow req'd? Many Hats
RR Joker Offline
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RR Joker
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The Swamp
Primary residence only for HPML purposes.
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#1411560 - 07/02/10 06:30 PM Re: HPML on 2nd home - escrow req'd? RR Joker
Many Hats Offline
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Orlando, FL
Since it exceeds the 1.5% threshold, we would just have to report it as a HPML on our LAR, corect?

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#1411574 - 07/02/10 06:43 PM Re: HPML on 2nd home - escrow req'd? Many Hats
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
Quote:
Since it exceeds the 1.5% threshold, we would just have to report it as a HPML on our LAR, corect?


Unless you secured this loan with the primary residence it is not a HPML, and there also is no place on the LAR to record HPMLs, only HOEPA loans. However since this a loan is subject to Reg Z you do have to record the rate spread.
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#1411579 - 07/02/10 06:46 PM Re: HPML on 2nd home - escrow req'd? Dan Persfull
Many Hats Offline
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Orlando, FL
Thanks Dan...I wish I had a memory like yours. Do you take Ginko Biloba or something? smile

Thanks again!

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#1411597 - 07/02/10 06:52 PM Re: HPML on 2nd home - escrow req'd? Many Hats
RR Becca Offline
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RR Becca
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Posts: 5,249
out of the frying pan...
Many Hats - you could do what I did and stick a post-it to the side of your monitor that says: HPML = Prim. Res. only; Reg Z (TIL) = Rate Spread
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#1411631 - 07/02/10 07:27 PM Re: HPML on 2nd home - escrow req'd? RR Becca
Many Hats Offline
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Orlando, FL
Good tip...thanks!

On another note....are RESPA disclosures required for purchase of an investment property (business purpose, non owner-occupied)?

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#1411669 - 07/02/10 08:07 PM Re: HPML on 2nd home - escrow req'd? Many Hats
raitchjay Offline
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OK
If it passes the Reg Z business purpose test, then no, no RESPA disclosures required. (Just be sure you aren't automatically exempting all non owner-occupied property.....if i as an individual purchase a house to flip, chances are it's not exempt.)
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#1411689 - 07/02/10 08:46 PM Re: HPML on 2nd home - escrow req'd? raitchjay
Many Hats Offline
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Orlando, FL
Would we have to provide a TIL at closing?

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#1411690 - 07/02/10 08:48 PM Re: HPML on 2nd home - escrow req'd? Many Hats
raitchjay Offline
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OK
If exempt from Reg Z as business purpose, no.
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