HOEPA

HOEPA is nothing but Home Ownership and Equity Protection Act. It is act which protect consumers when taking high fee and high rate loans. It comes into existance in 1994.

Increase in rate with respect to first lien and second lien is with respect to treasury maturity rate.This treasury securities rate will be regulated by HOEPA. They are high-rate loans.

If loan related points or fees increases then this loan is considered as high-fee loan.

In this lender provides additional loan as per HOEPA demand and is with high rate and high fees loan.

I will like to add some more information about HOEPA.
HOEPA avoids from expensive mortgage.

1)Negative amortization.
2)Balloon payments for loans with 5-year terms, or shorter.
3)Interest rate increase.
4)Unfavorable interest calculation(borrowers problem).
5)Prepayment penalties.

Lenders are disallowed to extending HOEPA loans-



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it stands for the Home Ownership and Equity Protection act.it protects consumers when taking high-fee and high rate loans.
if your loan-related points and fees exceed 8% or a preset amount then your loan is considered high-fee loan.

thanks for the quick reply