Home Ownership and Equity Protection Act

The Home Ownership and Equity Protection Act (HOEPA) is a U.S. law designed to protect consumers from predatory lending practices, particularly in high-cost mortgages. It requires lenders to provide clear disclosures about the terms and costs of loans, ensuring borrowers understand what they're getting into. HOEPA sets standards for certain high-interest loans, like limits on additional fees and prohibits misleading practices. Its goal is to help borrowers make informed decisions and prevent foreclosure risks associated with unsafe lending.