What is a High-Rate High-Fee Mortgage?
1) Rate threshold, which is, for a residential mortgage loan, the point at which the annual percentage rate equals or exceeds the rate set forth in 12 Code of Federal Regulations, Section 226.32(a)(1)(i), without regard to whether the residential mortgage loan may be considered a “residential mortgage transaction” or an extension of “open-end credit” as those terms are set forth in 12 Code of Federal Regulations, Section 226.2; or (2) The total points and fees threshold, which is: For loans in which the total loan amount is $40,000 or more, the point at which the total points and fees payable in connection with the residential mortgage loan less any excluded points and fees exceed 5% of the total loan amount; and For loans in which the total loan amount is less than $40,000, the point at which the total points and fees payable in connection with the residential mortgage loan less any excluded points and fees exceed 6% of the total loan amount. NOTE: Coming soon, a high-rate, high fee w
