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In general, a higher-priced mortgage loan is one with an annual percentage rate, or APR, higher than a benchmark rate called the Average Prime Offer Rate. A subordinate-lien mortgage is generally “higher-priced” if the APR of this mortgage is 3.5 percentage points or more higher than the APOR.
Similarly, it is asked, what is considered a high priced mortgage loan?
A higher-priced mortgage loan is a consumer credit transaction secured by the consumer's principal dwelling with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction as of the date the interest rate is set by the specified margin.
Also know, what is the difference between a high priced mortgage and a high cost mortgage?
In general, for a first-lien mortgage, a loan is “higher-priced” if its APR exceeds the APOR by 1.5 percent or more. On the other hand, a high-cost mortgage has the following three major criteria in its definition: The APR exceeds the APOR by more than 6.5 percent.
Creditors, servicers and assignees cannot charge a fee to modify, defer, renew, extend or amend a high-cost mortgage. Late fees are restricted to 4 percent of the past due payment and pyramiding pf late fees is prohibited. Fees for generation of payoff statements are generally banned, with limited exceptions.