Above-average fees or interest
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What is a high-cost mortgage loan?
High-cost loans can’t have certain features under federal law, such as some types of balloon payments in the terms of the mortgage. A high-cost loan can’t charge fees for loan modifications loan or for a loan payoff statement. There are restrictions on fees and practices, such as a limit on late fees to 4 percent of the past due payment.
What are high-cost FHA loan fees?
Fees that are calculated in high cost includes upfront mortgage insurance premium, yield spread premium, origination fees, underwriting fees, and other fees and costs associated with obtaining a mortgage loan Just the FHA upfront mortgage insurance premium is 1.75% that automatically gets applied to the 5% high-cost maximum limit.
What are the requirements for a high cost mortgage?
1026.32 Requirements for high-cost mortgages. (a) Coverage. (1) The requirements of this section apply to a high-cost mortgage, which is any consumer credit transaction that is secured by the consumer’s principal dwelling, other than as provided in paragraph (a) (2) of this section, and in which:
What are the features of a high cost home loan?
Features of High-Cost Loans. A high-cost home loan exceeds one of two thresholds set by the federal government: the interest rate threshold or the point and fees threshold. The interest threshold for a first mortgage is a rate of 6.5 percentage points above the APOR.