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Question 1

HIGH-COST MORTGAGE

Answer 1

A loan that meets or exceeds one or more of several thresholds set forth under the federal Home Ownership and Equity Protection Act (HOEPA). High-cost mortgages are subject to specific borrower education and disclosure requirements, as well as strict restrictions on loan terms that can be used.

Question 2

HIGHER-PRICED MORTGAGE LOAN (HPML)

Answer 2

A loan that meets or exceeds the threshold set forth under federal law for identifying higher-priced mortgage loans. HPMLs are subject to specific disclosure and appraisal requirements, as well as certain other restrictions.

Question 3

HOME EQUITY CONVERSION MORTGAGE (HECM)

Answer 3

A reverse mortgage insured by the FHA.

Question 4

HOME EQUITY LINE OF CREDIT (HELOC)

Answer 4

A HELOC is a type of mortgage loan that establishes a credit line that can be drawn upon as needed until the borrower reaches the maximum credit amount allowed.

Question 5

HUD-1 SETTLEMENT STATEMENT

Answer 5

A document, due on the day of closing, that provides an itemized listing of all costs associated with a real estate transaction including the fees of the lender, mortgage broker, and other settlement service providers. The HUD-1A is another version of this form that is used for refinance transactions. Effective October 3, 2015, the HUD-1 Settlement Statement and the HUD-1A Settlement Statement were replaced by the Closing Disclosure.
a.k.a.: Settlement Statement