Specs for Rate/Term for HPML

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Question:

Under the new Reg Z requirements for Higher Priced Mortgage Loans, I understand that home equity lines are exempt. Am I correct? If so, what are the rate and term restrictions for a closed end line?

Answer:

HELOCs are exempt from the HPML requirements. There are no rate and term restrictions outside of the prepayment penalty restriction found in 12 CFR 226.35. Any other such restrictions would be found in state law.

First published on BankersOnline.com 11/08/10