Which of the following is NOT a factor in determining HPML?

In determining a Higher-Priced Mortgage Loan (HPML), the factors considered primarily relate to the cost of the loan in comparison to the average prime offer rate (APOR) and the loan characteristics. The type of lien is crucial because it affects the risk profile of the loan—whether it is a first or subordinate lien can influence the terms. The amount financed is also significant as it directly impacts the loan-to-value (LTV) ratio and overall loan terms. The APR relative to APOR is essential in identifying whether the mortgage exceeds a certain threshold of pricing, thereby classifying it as HPML.

On the other hand, the borrower’s employment status does not directly influence the classification of the loan as HPML. While employment status may affect the overall creditworthiness of a borrower and their ability to repay a loan, it is not a specific criterion in determining the HPML status of a loan. Thus, this factor is not relevant in the context of the pricing and classification of the loan according to Regulation Z.