HPML Calculation Performed Incorrectly-Remedy?

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Question:

What if an HPML calculation was done incorrectly, later discovered to be an HMPL, and the first-mortgage loan closed without escrow? Is there a remedy?

Answer:

The only way to remedy the situation is to establish an escrow for the loan or lower the rate so it's no longer an HPML.

First published on BankersOnline.com 6/4/12