I’ll share this so the other mortgage folks see it-just closed a second home purchase last week ($300k purchase, 20% down) and had to do a pricing cure due to Mavent fail such that our gross was about 120 bps (our average conventional, by contrast, is about 290). Once we pay our branch stuff it’ll be a loss.
I’ve told our staff that we need to classify all second home purchases as investment properties going forward so the HMPL test isn’t applied.
Coincidentally, I locked this one right before a rate jump and it failed the test because the index it uses to compare pricing was 6 days behind my date of lock (so an example where the CFPB’s imposed compliance obligations aren’t flexible enough to accommodate rate deterioration of this magnitude). This, of course, is to the long-term detriment of the borrower if we have to require additional down payment or a program change to make a profit (or otherwise we just don’t make them at all).