If a
loans meets the following tests, it is covered under the law: 1) For a first - lien
loan otherwise referred to as the original mortgage on the property - the Annual Percentage Rate (APR) exceeds by more than 8 percentage points compared
against the rates on Treasury
securities of comparable maturity; 2) For a second - lien
loan otherwise referred to as a 2nd mortgage - the APR (Annual Percentage Rate) exceeds by more than 10 percentage points compared to the rates in Treasury
securities of comparable maturity; or the total points and fees payable by the borrower at or before closing exceed the larger of $ 561 or 8 % of the total
loan amount.