HOEPA Regulations Explained

The Home Ownership and Equity Protection Act, or HOEPA, is a federal law designed to help homeowners avoid being taken advantage of when refinancing or getting a second mortgage. As a federal law, HOEPA is subject to strict government regulation. Key provisions of the HOEPA regulation center around protecting equity Loans with high rates and fees are regulated most strictly. There are disclosures that are required by law, and limits on specific practices. These disclosures come with specific requirements and regulations. Check out our HOEPA Disclosure Requirements Checklist to learn more. Violations under this regulation are enforced by the borrower and his/her attorney. That is, you have the right to sue lenders guilty of violating HOEPA regulations. You may also cancel the loan for up to three years from origination if it is in violation. The FTC controls the HOEPA regulation and issues new rules and clarifications. We have summarized these rules for lenders on our HOEPA Lender Compliance Guide. We stay up to date on the latest developments with HOEPA Regulation, but the FTC’s Consumer Information site is a good place to go to learn more and stay current. Anyone applying for HEOPA loans can call us for one-on-one counseling. We’ll help you understand the required disclosure forms and make sure the law is being followed properly. Reach out to us today if you have any questions or need any help.