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APOR RATE PAGE LINK - CLICK HERE

Here is how to test for a High Priced Mortgage Loan in Encompass and Marksman

Instructions on how to test for HPML in Encompass:

  1.  Click Tools
  2. Compliance Review
  3. Mavent will appear
  4. Click Order to run the test
  5. View the results and watch for fails.
  6. All loans are run through this multiple times.

The reason a file will fail HPML is because the rate is more than 1.5% over the APR.  On a conventional loan if you're raising the rate to pay closing costs and give a contribution be careful.  This could trigger a fail.  You need to include the mortgage insurance in this calculation as well as the rate.  A lower Fico loan with high mortgage insurance costs is more likely to fail HPML.

The HPML Test requires that the APR not be more than 1.5% over the APOR.  Here is the APOR.  Google it if you need the current rate.

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Encompass Calculates this and lets you know if you loan passed the HPML test.

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Marksman, our pricing engine also calculates the APOR and lets you know if it passes. This is less accurate because it does not include the accurate mortgage insurance cost for the loan.

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