Effective for loans originated on or after January 1, 2020, 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 ≥ $21,980||5% of Total Loan Amount|
|Loan Amount < $21,980||8% of Total Loan Amount or $1,099, 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 ≥ $109,898||3% of Total Loan Amount|
|$65,939 ≤ Loan Amount < $109,898||$3,297|
|$21,980 ≤ Loan Amount < $65,939||5% of Total Loan Amount|
|$13,737 ≤ Loan Amount < $21,980||$1,099|
|Loan Amount < $13,737||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.
6131 Orangethorpe Avenue, Suite 500
Buena Park, CA 90620
Phone: (800) 453-7884
This information is provided to licensed mortgage professionals only and not for distribution to consumers. Please visit https://www.swmc.com/disclaimer.php or refer to www.nmlsconsumeraccess.org to see where Sun West Mortgage Company, Inc. (NMLS ID 3277) is a licensed lender and servicer. All Rights Reserved. We are not accepting applications from Georgia or Massachusetts residents. We are purchasing mortgages secured by Massachusetts properties but not Georgia. Sun West Mortgage Company, Inc. (NMLS ID 3277) holds a Financing Law License (#6030119) [Loans made or arranged pursuant to a California Financing Law license], licensed by the California Department of Business Oversight, Phone: (866) ASK-CORP and has a DRE Real Estate Corporation License Endorsement (#00793885), licensed by the California Department of Real Estate, Phone: (877) 373-4542.