HPML and Bare Land

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Question:

I have a bare land loan currently on the books. The customer wants to refinance his land, and pay off a few items. The property has forty acres and no home on it. Do I have to submit for HPML? I know that since it is over twenty-five acres RESPA doesn't apply, but I wanted to verify.

Answer:

Sec. 226.35 Prohibited acts or practices in connection with higher-priced mortgage loans. (a) Higher-priced mortgage loans--(1) For purposes of this section, a higher-priced mortgage loan is a consumer credit transaction secured by the consumer's principal dwelling.... No principal dwelling means no HPML.

First published on BankersOnline.com 10/04/10