Sun West’s Implementation of Truth in Lending (Regulation Z)
Annual Threshold Adjustments
Effective for loans originated on or after January 1, 2018, CFPB’s Final Rule updates the dollar amounts for provisions implementing amendments to Truth-in-Lending Act (TILA) under the Home Ownership and Equity Protection Act (HOEPA) and the Dodd-Frank Act. Accordingly, Sun West will be updating the following sections of its Implementation Guide:
Home Ownership and Equity Protection Act (HOEPA)
The Loan Amount Thresholds and Points and Fees Limit used to determine whether a transaction is a High Cost Mortgage are revised as below:
| Loan Amount Threshold | Points and Fees Limit |
| Loan Amount ≥ $21,032 | 5% of Total Loan Amount |
| Loan Amount < $21,032 | 8% of Total Loan Amount or $1,052, whichever is less |
Dodd-Frank Act - Ability to Repay/Qualified Mortgage (QM)
The Loan Amount Thresholds and Points and Fees Limits used to determine whether a transaction is a Qualified Mortgage (QM) are revised as below:
| Loan Amount | Points and Fees Limit |
| Loan Amount ≥ $105,158 | 3% of Total Loan Amount |
| $63,095 ≤ Loan Amount < $105,158 | $3,155 |
| $21,032 ≤ Loan Amount < $63,095 | 5% of Total Loan Amount |
| $13,145 ≤ Loan Amount < $21,032 | $1,052 |
| Loan Amount < $13,145 | 8% of Total Loan Amount |
The Total Loan Amount is calculated by subtracting any points and fees that are financed by the creditor from the amount financed.
If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693.
Sun West Mortgage Company, Inc.
18000 Studebaker Road, Suite 200
Cerritos, CA 90703
Phone: (800) 453-7884
This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.
