A loan on a borrower's primary dwelling where the APR exceeds at least 1.5% of the applicable average prime offer rate for a first lien loan is known as a?

The term refers specifically to a "higher-priced loan," which is a designation used in mortgage lending to identify loans that have an annual percentage rate (APR) exceeding a certain threshold compared to the average prime offer rate (APOR). In this case, if the APR is at least 1.5 percentage points above the applicable APOR for a first lien loan, it qualifies as a higher-priced loan.

Understanding this categorization is essential as it triggers additional regulatory requirements and compliance measures to protect borrowers. Higher-priced loans typically carry increased consumer risk, so they are subject to more scrutiny to ensure fair lending practices.

In contrast, while terms like "high cost loan" and "HOEPA loan" are related to loans that may also involve predatory lending practices or unfavorable terms, they emphasize different thresholds and protections under various laws. For instance, a high-cost loan typically refers to those covered under the Home Ownership and Equity Protection Act (HOEPA) and is identified by different criteria based on points and fees, rather than just APR relative to the APOR. Similarly, a predatory loan implies exploitative lending practices, which is a broader term that encompasses various negative features rather than just pricing in relation to APR. Thus, "higher-priced loan" is