Click High Priced Mortgage Loan to view the Higher Priced Mortgage Loan (HPML) compliance test results. The High Priced Mortgage Loan tab includes compliance testing and results for the following:
· HPML - Higher Priced Mortgage Loan (HPML) APR Coverage Test
· HPML - Additional Requirements (if applicable)
Tip: The High Priced Mortgage Loan test cannot be performed until a GFE has been saved.
A summary of the results of the test appears at the top of the Higher Priced Mortgage Loan tab and displays a statement about the results of the compliance testing.
Badges appear next to each compliance test in the summary and throughout the tab to indicate if the loan has passed or failed. A green badge with a checkmark will appear if the loan is currently passing that compliance test. A red triangle badge with an exclamation mark will appear if the loan is currently not passing that compliance test. A yellow circle badge will appear if there is not currently enough information to perform that compliance test.
HPML - Higher Priced Mortgage Loan (HPML) APR Coverage Test will determine if the loan is a HPML loan and will display the results. In the initial view, the HPML APR Threshold and Transaction APR are displayed. To view details of the test, click the Show Details hyperlink to expand the view to display the Rate Lock Date, APR, and 1st Lien Conforming Adjustment information. If the rate has not yet been locked, the most recent APR values will be used for testing to assist in identifying issues prior to the time of lock.
HPML - Additional Requirements section will display if the loan is identified as HPML. The additional testing will identify if an escrow account is established and provides a statement in the summary section that a Second Appraisal may be required. Escrow Account Established displays and assumed to be established when Escrows Waived field is set to No on the Forms & Docs > 1003 > Other Data tab.
Tip: Compliance testing in the LOS is dynamic and updates automatically as information is added or changed on the loan application. Users should periodically review the Compliance Alerts for any updates that could affect the loan application.
Click Print to print the Compliance Alerts which will print each of the compliance testing tabs on a separate page.
Click Close to close the Compliance Alerts window.