[shea930]

I’m trying to make sure I understand these 3 H’s correctly. I know they all have different thresholds and the property they cover varies. But I’m trying to figure out what the HPCT determines….

For example:
HOEPA – requires disclosure 3 days prior along with may other things
HPML – requires escrows and verfity ablitity to repay
HPCT – ????

Does whether a loan is HPCT or not just affect whether the loan qualifies under the “safe harbor” or just the “rebuttable presumption”?

[rcooper]

Yes, if you have an HPCT QM it determines that you only get the rebuttable presumption of compliance rather than the safe harbor. Also if you have a non-QM balloon loan that is a HPCT you have to factor in the balloon payment into the payment calculation (see 1026.43(c)(5)(ii)).

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