Lender Alerts

Sun West's Implementation of Truth in Lending (Regulation Z) Annual Threshold Adjustments

Dear Licensed Partner,

Effective for loans originated on or after January 1, 2017, 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 guidelines:

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  $20,579	5% of Total Loan Amount
Loan Amount  $20,579	8% of Total Loan Amount or $1,029, 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  $102,894	3% of the total loan amount
$61,737  Loan Amount  $102,894	$3,087
$20,579  Loan Amount  $61,737	5% of the total loan amount
$12,862  Loan Amount  $20,579	$1,029
Loan Amount  $12,862	8% of the 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.

Sincerely,

Sun West Mortgage Company, Inc. 18000 Studebaker Road, Suite 200 Cerritos, CA 90703 Phone: (800) 453-7884