Lenders Told to Use 30-Yr Bond in HOEPA ‘High Cost’ Calculations
With the official return of the 30-year Treasury bond to the market last month, lenders must be aware of the new benchmark when determining the annual percentage rate threshold under the Home Ownership and Equity Protection Act and various state anti-predatory lending laws, according to compliance experts. The 30-year bond replaced the 20-year bond March 1 as the new benchmark in determining whether a fixed-rate loan’s APR exceeds the relevant “high cost loan” threshold…