Higher Priced Mortgage Loans (HPML)

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 this web site. Please note that it is necessary that these files be updated weekly, or else the SCE 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. If you are using a version of the SCE that is hosted by J. L. Sherman and Associates, Inc., then the APOR files will be automatically updated weekly for your use.

Sample Request

The following is a sample SCE request for a Hpml calculation:

{
    "Module": "Hpml",
    "Data": {
        "LienType": "first",
        "IsJumbo": false,
        "RateType": "fixed",
        "LockInDate": "2022-03-22",
        "RegZApr": "5.125",
        "TermInYears": "30"
    }
}

Sample Response

The following example is the response returned from the SCE for the request provided at the beginning of the previous section.

{
    "Result": 200,
    "Module": "Hpml",
    "Data": {
        "Errors": [],
        "Warnings": [],
        "IsHpml": false,
        "Apor": "4.230",
        "Spread": "1.500",
        "Difference": "-0.605",
        "Date": "2022-03-21"
    }
}