HOEPA Loans are part of which larger regulation?

HOEPA Loans are part of the Truth in Lending Act (TILA). TILA was created to promote informed use of consumer credit by requiring disclosures about its terms and costs. Specifically, HOEPA, or the Home Ownership and Equity Protection Act, addresses specific types of high-cost loans, adding further protections for consumers by requiring additional disclosures and prohibiting certain practices in connection with these loans. This includes establishing criteria for identifying high-cost loans and ensuring that borrowers are informed of the risks associated with these loans.

The other regulations listed, while relevant to various aspects of lending and real estate, do not relate directly to HOEPA. The Equal Credit Opportunity Act (ECOA) focuses on preventing discrimination in credit lending. The Home Mortgage Disclosure Act (HMDA) is designed to provide the public with information about mortgage lending patterns and practices, and the Real Estate Settlement Procedures Act (RESPA) deals mainly with the procedures that must be followed in residential real estate transactions, particularly regarding disclosures of settlement costs and services.

Understanding the framework and intent of TILA and how HOEPA fits into that framework is crucial as it illustrates how the regulation aims to protect consumers in their borrowing experiences, particularly in high-cost loans.