Under which law and regulation is the Home Ownership Equity Protection Act (HOEPA) categorized?

The Home Ownership Equity Protection Act (HOEPA) is categorized under the Truth in Lending Act (TILA) and Regulation Z. HOEPA was enacted in 1994 as an amendment to TILA and specifically addresses high-cost home loans, aiming to protect consumers from predatory lending practices.

The key purpose of HOEPA is to provide additional disclosures and protections for consumers who are obtaining high-cost loans, which are defined based on specific thresholds regarding the annual percentage rate (APR) and fees. By being part of TILA, HOEPA ensures that borrowers receive important information about the terms, costs, and risks associated with such loans, ultimately promoting transparency in the lending process.

In contrast, the Fair Housing Act focuses primarily on preventing discrimination in housing, the Real Estate Settlement Procedures Act (RESPA) regulates disclosures of closing costs and settlement procedures, and the Equal Credit Opportunity Act (ECOA) aims to eliminate discrimination in credit transactions. These laws serve different purposes and are not directly connected to the specific protections established by HOEPA.