Determining an HPML

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Question:

If we have a ten year loan (amortized over twenty years) with a balloon payment due at maturity, do we use the variable APOR tables, or fixed APOR tables to determine if we have a high priced mortgage loan?

Answer:

Which table you would use would depend on whether the loan has a variable rate feature where the rate can change during the ten year term.

First published on BankersOnline.com 4/26/10