What does HOEPA stand for?

HOEPA stands for the Home Ownership and Equity Protection Act. This act was established to protect consumers from predatory lending practices associated with high-cost home loans. It applies to certain loans that are considered high cost, imposing specific disclosure requirements and other protections to ensure that borrowers are informed of the true cost of their loans and are safeguarded from deceptive practices. By requiring lenders to provide clear and transparent information about terms and costs, HOEPA aims to promote responsible lending and borrowing practices in the mortgage industry.