1APOR are rates published by Federal Reserve Board which are a survey-based estimate of APRs currently offered on prime mortgage loans of a comparable type. APOR rates can be found on FFIEC website at http://www.ffiec.gov/ratespread/newcalc.aspx
If a mortgage loan is an HPML loan, following requirements need to be met:
Occupancy Type | Monthly Residual Income | Guideline |
---|---|---|
Primary Residence | $2500 or greater | Lenders must simply comply with the minimum reserve requirements for the loan program |
Greater than $800 and less than $2500 | Greater of:
|
|
Less than $800 | The loan is not eligible for purchase. | |
Second Homes and Investment Properties | $2500 or greater | Eligible for purchase with acceptable residual income evaluation in file. |
Less than $2500 | The loan is not eligible for purchase. |
Consider a first lien loan with APOR of 4% and Annual MIP of 1.25%
HPML Loans (APR ≥ 5.5%) |
Non-HPML Loans (APR < 5.5%) |
|
---|---|---|
Rebuttable Presumption Loans (APR > 6.4%) |
Credit Qualify and Residual Income Verification* |
Not Applicable (A rebuttable presumption loan will always be HPML) |
Safe Harbor (APR ≤ 6.4%) |
Credit Qualify | No Special Requirements |
*Residual income verification is not required for FHA loans.