HOEPA, or the Home Ownership and Equity Protection Act, has been in effect for 20 years now. The Act requires those with high-cost mortgages, refinances and home equity loans to receive special disclosures and access to legal recourse if the law is violated. In 2013, a new HOEPA rule was added, requiring consumers with other kinds of loans to get housing counseling as well. We’ve provided a HEOPA Lender Compliance Guide to help those who want to know more about what kinds of loans are affected and what rules affect them.
HOEPA Calculator To determine whether a loan is “high-cost” for the purposes of the law, the Federal Financial Institutions Examination Council (FFIEC) offers a Rate Spread Calculator that will help calculate whether the loan’s terms exceed the Average Prime Offer Rate (APOR). There is a second test under the law that then must be completed; this test is specific to each no general calculator available. Interested parties can download a PDF of the new rules from the Consumer Financial Protection Bureau, but this document is over 400 pages long and is somewhat technical. We do offer HOEPA Lender Downloadable Quick Reference Guides by request. Ultimately, for borrowers we recommend letting a HUD approved housing counselor help you navigate the new requirements. A Priority Pre-purchase Counseling℠ session is the best place to start. Call 888-845-9057 to get started, or request an appointment online. We’ll help you understand your options and take advantage of any legal protections available to you.