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Higher Priced Mortage Loan (HPML) Analysis now in SCEX

Submitted 2010-03-22 12:17:00 -0700

The SCEX is loan calculation software that can be embedded within your own application, supporting consumer, commercial, and mortgage loan calculations. In the previous update to our website, we mentioned the addition of the HPML analysis to SCEX, among other enhancements. There has been so much interest in the HPML analysis that we thought it deserved special mention.

Defining Higher Priced Mortgage Loans

Higher Priced Mortgage Loans are defined as consumer-purpose, closed-end loans secured by a consumer’s principal dwelling that have an annual percentage rate (APR) equal to or greater than the Average Prime Offer Rate (APOR) by 1.5 percentage points for first-lien loans, or 3.5 percentage points for subordinate-lien loans for a comparable transaction.

The APOR is published weekly by the federal government, and the two files (one for fixed rates and one for adjustable rates) are available for download at the this web site. These files need to be updated weekly, or else the SCEX will not be able to determine if a loan is a HPML for loans whose lock in dates fall outside the range of dates provided in the APOR files.

We have received a request to provide the service of downloading the weekly files and sending them to individual partners for inclusion in their systems, and we are willing to provide that service to all who desire it.