What does HOEPA stand for in mortgage law?

HOEPA stands for the Home Ownership and Equity Protection Act. This federal law was enacted to protect consumers from predatory lending practices associated with high-cost mortgages. It requires lenders to provide additional disclosures and imposes certain restrictions on loan terms and practices, especially for loans that exceed certain thresholds in terms of points and fees.

One of the key features of HOEPA is that it mandates clear disclosures about the terms and costs associated with a mortgage, ensuring that borrowers are fully informed. It also provides borrowers with certain rights, such as the ability to cancel a loan under specific circumstances, which is intended to help prevent situations where consumers might fall victim to abusive lending.

The other options provided refer to various possible interpretations of HOEPA but do not correctly represent the full legal name of the act, highlighting the importance of understanding the exact terminology in the context of mortgage law. This precision is crucial for mortgage professionals who need to adhere to regulations and ensure compliance in their dealings with clients.