Section 5 Home Ownership and Equity Protection Act of 1994

• Library: Consumer Law and Practice 2010

TILA's protections are enhanced by 15 U.S.C. § 1637(a) of the HOEPA (Home Ownership and Equity Protection Act of 1994), Pub. L. No. 103-325, 108 Stat. 2190. HOEPA specifically prohibits deceptive practices in home equity lending. Regulation Z, 12 C.F.R. pt. 226, pertains to HOEPA loans, too; therefore, HOEPA violations may mean that rescission is available as a remedy. HOEPA applies to high-cost second mortgages. If the APR exceeds Treasury securities of comparable maturity by ten percentage points, or if the total fees and points payable at or before the closing exceed $561 or eight percentage points, HOEPA applies. 12 C.F.R. § 226.32(a)(1)(i). Compliance with HOEPA allows borrowers to know in advance exactly what fees and costs they will be paying for the loan. Unlike TILA, HOEPA specifically prohibits the use of certain types of loans. When applicable, HOEPA prohibits the use of certain loan...