Higher-Priced Covered Transaction (HPCT)

Higher-Priced Covered Transaction (HPCT)

A First Lien Mortgage secured by a Primary Residence, a second home or Investment Property not exempt from ATR requirements under the Truth in Lending Act and its implementing regulations that has an annual percentage rate (APR) of 1.5% or more above the average prime offer rate (APOR) for a comparable transaction as of the rate lock date. APR and APOR are both defined in Regulation Z. The APOR is published at least weekly by the Federal Financial Institutions Examination Council (FFIEC) and is derived from pricing terms obtained from a survey of prime mortgage lenders. For purposes of this Guide, a Higher-Priced Covered Transaction that is secured by a Primary Residence is also a Higher-Priced Mortgage Loan.