CONNECTICUT HIGH COST WORKSHEET AND NONPRIME HOME LOAN TEST
NOTE: If this loan is a refinance of a loan within two years by the same lender, please also complete the Connecticut Prepaid Finance Charge Worksheet for the Refinance of an Existing Loan within 2 Years.
Borrower Name: _______________________________ Loan # _______________ Date: ________________
Prepared By: ____________________________
HIGH-COST TEST
Prohibited High-Cost Loan? Nonprime Home Loan?
Yes Yes
No No
(circle one for each applicable test)
POINTS AND FEES TEST
Points and Fees
1) Enter the Loan Amount: 2) Enter the “Amount Financed” per TIL disclosure: 3) Subtract line 2 from line 1: 4) Enter the total amount of per diem interest: 5) Subtract line 4 from line 3: 6) Enter any Credit life/disability premiums paid by borrower: 7) Enter the amount of any fee(s) that will be paid by the borrower which meet both of the following: (a) The fee is NOT classified as a “finance charge,” AND (b) The fee is retained as compensation to either the creditor, an affiliate of the creditor, or the broker (if applicable) (i.e., the fee is not passed on to a third party). 8) Add lines 5, 6 and 7: _______________ (7) _______________ (1) _______________ (2) _______________ (3) _______________ (4) _______________ (5) _______________ (6)
(8)
Prepaid Finance Charge Comparison
9) For First Mortgages Only, Multiply line 1 by 5% and enter the greater of 5% or $2,000:
(9) (10)
10) For Second Mortgages Only, Multiply line 1 by 8%:
FOR FIRST MORTGAGES
• If the number on line 8 is GREATER than the number on line 9, SUNTRUST POLICY
PROHIBITS THIS LOAN FROM BEING CLOSED, FUNDED OR PURCHASED. PLEASE SEE YOUR MANAGER IMMEDIATELY.
• If the number on line 8 is EQUAL TO OR LESS than the number on line 9, you must complete the
“APR Test.” FOR SECOND MORTGAGES
• If the number on line 8 is GREATER than the number on line 10, SUNTRUST POLICY
PROHIBITS THIS LOAN FROM BEING CLOSED, FUNDED OR PURCHASED. PLEASE SEE YOUR MANAGER IMMEDIATELY.
• If the number on line 8 is EQUAL TO OR LESS than the number on line 10, you must complete
the “APR Test.”
Continue to Page 2
BRO 0689 (07/08) Page 1 of 3 Connecticut High Cost Worksheet and Nonprime Home Loan Test
CONNECTICUT HIGH COST WORKSHEET AND NONPRIME HOME LOAN TEST
APR TEST
1st LOANS FOR 1st LOANS ONLY
Enter the Annual Percentage Rate (“APR”) per TIL disclosure: Enter the appropriate “Section 32 Ceiling” per Rate Sheet: _______________% (A) _______________% (B)
2nd LOANS FOR 2nd LOANS ONLY
Enter the Annual Percentage Rate (“APR”) per TIL disclosure: Enter the appropriate “Section 32 Ceiling” per Rate Sheet PLUS 2 %: _______________% (A) _______________% (B)
•
If the rate on line A is GREATER than the rate on line B, SUNTRUST POLICY PROHIBITS THIS LOAN FROM BEING CLOSED, FUNDED OR PURCHASED. PLEASE SEE YOUR MANAGER IMMEDIATELY. If the rate on line A is EQUAL TO OR LESS than the rate on line B, this is an acceptable loan.
•
NONPRIME HOME LOAN TEST
The nonprime home loan test must be completed on first and subordinate mortgage loans of owneroccupied primary residences, with loan amounts equal to or less than $417,000. For a “home loan” to be a “nonprime home loan” as defined by Connecticut, the loan’s APR must fail BOTH tests below in Part I and Part II. PART I. CONNECTICUT RATE TEST The selection of the appropriate “Section 32 Ceiling” rate is based upon the application date or the credit package received date. FOR FIRST LOANS ONLY
Enter the Annual Percentage Rate (“APR”) per TIL disclosure: Enter the appropriate “Section 32 Ceiling” per Rate Sheet MINUS 5%: _______________% (A) _______________% (B)
FOR SUBORDINATE LOANS ONLY
Enter the Annual Percentage Rate (“APR”) per TIL disclosure: Enter the appropriate “Section 32 Ceiling” per Rate Sheet MINUS 3%: _______________% (A) _______________% (B)
• •
If the rate on line A is EQUAL TO OR GREATER than the rate on line B, you must complete Part II. Conventional Mortgage Rate Test. If the rate on line A is LESS than the rate on line B, this loan is NOT a “nonprime home loan.” No need to continue further with Part II test.
Continue to Page 3
BRO 0689 (07/08) Page 2 of 3 Connecticut High Cost Worksheet and Nonprime Home Loan Test
CONNECTICUT HIGH COST WORKSHEET AND NONPRIME HOME LOAN TEST
PART II. CONVENTIONAL MORTGAGE RATE TEST The selection of the appropriate Conventional Mortgage rate is based upon the rate locked in date. Choose the Conventional Mortgage rate listed one week prior to the lock in date. FOR FIRST LOANS ONLY
Enter the Annual Percentage Rate (“APR”) per TIL disclosure: Enter the appropriate Conventional Mortgage Rate per Rate Sheet PLUS 1.75%: _______________% (A) _______________% (B)
FOR SUBORDINATE LOANS ONLY
Enter the Annual Percentage Rate (“APR”) per TIL disclosure: Enter the appropriate Conventional Mortgage Rate per Rate Sheet PLUS 3.75 %: _______________% (A) _______________% (B)
•
If the rate on line A is EQUAL TO OR GREATER than the rate on line B, THIS LOAN IS A CONNECTICUT “NONPRIME HOME LOAN” and YOU MUST COMPLY WITH THE NONPRIME HOME LOAN REQUIREMENTS AND PROHIBITIONS PROVIDED ON STMPARTNERS AND THE NONPRIME SPECIAL MORTGAGE REQUIREMENTS LISTED BELOW. If the rate on line A is LOWER than the rate on line B, this loan is NOT a “nonprime home loan.”
•
NONPRIME SPECIAL MORTGAGE REQUIREMENTS
Refinance transactions involving nonprime home loans require a determination as to whether the current mortgage being refinanced is or is not a special mortgage. Connecticut law defines a “special mortgage” as a loan originated, subsidized or guaranteed by or through a state, federal, tribal or local government, or nonprofit organization. Examples of special mortgages include FHA, VA, Connecticut Housing Finance Authority, etc. In order to determine if the nonprime home loan is a special mortgage, the following checklist must be completed: Step 1 Ask the borrower if their current mortgage is a special mortgage as described above and indicate answer below. ____Confirmed loan is NOT a special mortgage – no further action is required. ____Confirmed loan is a special mortgage – proceed to Step 3 ____Unable to confirm – proceed to Step 2 If unable to determine from the borrower that the current mortgage is or is not a special mortgage, you must attempt to contact the current mortgage servicer to obtain this information. Servicer Name: __________ Contact Name:___________ Phone Number: __________ Result of contact: ____Confirmed loan is a special mortgage - proceed to Step 3 ____Unable to confirm – proceed to Step 4 Step 3 If the loan is determined to be a special mortgage, the borrower must obtain a written certification from a counselor with an independent third party nonprofit organization approved by the United States Department of Housing and Urban Development that the borrower has received mortgage counseling. The written certification must be placed in the loan file. If you are unable to determine if the borrower’s current mortgage is a special mortgage and a good faith effort has been made to complete steps 1 and 2, this loan may still be closed, funded or purchased.
Step 2
Step 4
BRO 0689 (07/08) Page 3 of 3 Connecticut High Cost Worksheet and Nonprime Home Loan Test