Property Financial Corporation makes loans that qualify, under a Federal Reserve Board amendment to Regulation Z, as Higher-Priced Mortgage Loans (HPMLs). Quinn applies to Property Financial for an HPML. To make the loan, the lender must:
a-convince an appraiser to inflate the value of the property.
b-impose a prepayment penalty for the duration of the loan.
c-structure the loan to specifically evade the HPML protections.
d-verify the borrower's ability to repay the loan.