Homeownership and Equity Protection Act

The Homeownership and Equity Protection Act (HOEPA) is a U.S. law designed to protect consumers from unfair lending practices, particularly regarding high-cost mortgages. It requires lenders to provide clear disclosures about the terms and costs of a mortgage, helping borrowers understand what they are agreeing to. HOEPA also imposes certain restrictions on high-interest loans to prevent predatory lending, ensuring that consumers are more informed and safeguarded against practices that could lead to foreclosure or excessive debts. Overall, it aims to promote responsible lending and protect homeowners' equity.