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# How is APOR calculated?

## How is APOR calculated?

Average Prime Offer Rate is based on average interest rates, fees, and other terms on prime mortgages. Prime mortgages are loans that are to highly qualified borrowers. FFIEC calculates APOR by using the data obtained from multiple sources which includes: Freddie Mac’s Primary Mortgage Market Survey (PMMS).

What is an APOR in mortgage?

Higher-Priced Mortgage Loan (HPML) A first-lien Mortgage secured by a Primary Residence that has an annual percentage rate (APR) of 1.5% or more above the average prime offer rate (APOR) for a comparable transaction as of the rate lock date. APR and APOR are both defined in Regulation Z.

How is HPML calculated?

For first liens, add 1.5 % to the listed index if the loan was locked in (or re-locked) during the week following the date. For example, if your APR is 7.09 and you subtract 1.5 your answer is 5.59. If your answer is higher than the posted index, which is currently 5.09 your loan is classified as an HPML.

### What is the prime offer rate?

Save. Copy. Average prime offer rate means an annual percentage rate that is derived from average interest rates, points, and other loan pricing terms currently offered to consumers by a representative sample of creditors for mortgage transactions that have low-risk pricing characteristics.

What is HPML stand for?

higher-priced mortgage loan
Regulation Z defines a higher-priced mortgage loan (HPML) as a consumer credit transaction secured by the consumer’s principal dwelling with an APR that exceeds the average prime offer rate (APOR) for a comparable transaction as of the date the interest rate is set, by 1.5 or more percentage points for loans secured by …

What is a Section 32 loan?

Section 32 of Regulation Z implements the Home Ownership and Equity Protection Act of 1994 (HOEPA). HOEPA protects consumers from deceptive and unfair practices in home equity lending by establishing specific disclosure requirements for certain mortgages that have high rates of interest or assess high fees and points.

## What are Section 32 fees?

The mortgage would be a Section 32 loan if certain fees and points, including the mortgage-broker fees, that borrowers pay at or before closing exceed \$547 (2007 amount) or 8 percent of the total loan amount, whichever is larger.

What is a high cost loan?

A high-cost home loan is one in which the annual percentage rate (APR) of the loan at consummation is: one whose total points and fees exceed the greater of six percent of the total loan amount or fifteen hundred dollars if the total loan amount is less than fifty thousand dollars.

What is a notice of rescission?

A notice of rescission is a form given with the intention of terminating a contract, provided that the contract entered into is a voidable one. It releases the parties from obligations set forth in the contract, effectively restoring them to the positions they were in before the contract existed.

### What’s in a section 32?

A vendor’s statement – also known as section 32 – is a document that tells potential buyers certain things about the property title they should know before signing a contract to purchase. A vendor’s statement discloses information not readily found by inspecting a property.