concept

Home Ownership and Equity Protection Act

Also known as: HOEPA

Facts (12)

Sources

Regulatory - American Predatory Lending predatorylending.duke.edu Charlie Zong · Duke University 5 facts

claimThe Home Ownership and Equity Protection Act (HOEPA) established interest rate and fee thresholds that triggered disclosure requirements and prohibitions on certain loan terms, including prepayment penalties.

claimThe Home Ownership Equity Protection Act (HOEPA) of 1994 amended the Truth in Lending Act (TILA) to provide borrowers with protections against loans featuring excessive interest rates or fees.

procedureThe Home Ownership and Equity Protection Act (HOEPA) required lenders to verify that a borrower has the ability to repay a loan.

claimThe Home Ownership and Equity Protection Act (HOEPA) required lenders to verify that a borrower has the ability to repay the loan.

claimThe Home Ownership Equity Protection Act (HOEPA) protections were limited to refinance mortgages, with the intent of protecting the existing equity of homeowners from predatory refinancing practices.

Predatory Lending Practices - House.gov commdocs.house.gov U.S. House of Representatives, Committee on Banking and Financial Services 4 facts

claimThe discretionary regulatory authority language in the Home Ownership and Equity Protection Act (HOEPA) does not explicitly limit the Federal Reserve's power to high-cost loans.

perspectiveMr. Bartlett argues that yield spread premiums and broker-lender relationships should be included in a 5 percent fee level, noting that the current legislative bill excludes back-end payments similar to the Home Ownership and Equity Protection Act (HOEPA).

referenceThe Home Ownership and Equity Protection Act (HOEPA) grants the Federal Reserve Board discretionary regulatory authority to prohibit acts or practices in connection with mortgage loans that the Board finds to be unfair, deceptive, or designed to evade the provisions of the act.

perspectiveMr. Eakes argues that the Federal Reserve has abdicated its responsibility to use its discretionary authority under the Home Ownership and Equity Protection Act (HOEPA) to address unfair or deceptive mortgage lending practices.

Financial Ethics 101: Predatory Lending - Seven Pillars Institute 7pillarsinstitute-org.sevenpillarsconsulting.com Yuqing Li · 7 Pillars Institute Jun 18, 2024 3 facts

referenceThe Home Ownership and Equity Protection Act (HOEPA), enacted by the U.S. Congress in 1994, is the first modern anti-predatory lending statute.

formulaThe Home Ownership and Equity Protection Act (HOEPA) regulates 'high-cost loans' where the annual percentage rate (APR) and fees exceed the yield on comparable Treasury securities plus 8%.

measurementAs of 2007, 29 states had enacted state-level statutes modeled after the federal Home Ownership and Equity Protection Act (HOEPA).