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How is the APR determined for a variable rate HOEPA loan?

April 26, 2017Apr hoepa loan rate

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How is the APR determined for a variable rate HOEPA loan?

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Lenders must use the rules provided in the commentary to Section 226.17(c) (1) in calculating the APR on a variable-rate loan. Briefly, the APR calculation should assume the rate in effect at the time of disclosure remains unchanged. The commentary also addresses the APR for discount, premium and stepped-rate transactions (which must reflect composite annual percentage rates).