Where to find more information about Home Ownership and Equity Protection Act (HOEPA)/Section 32 mortgages?


The Home Ownership and Equity Protection Act (HOEPA) was established by the Federal Trade Commission in 1994. It exists to help curb predatory lending practices and is particularly helpful to know about HOEPA/Section 32 home mortgages when refinancing, or taking out a home equity installment loan.

Consumers are advised to report any deceptive business practices and inform themselves about their rights.

More information about HOEPA rules, about preventing and acting towards fraudulent lending practices can be found on the Federal Trade Commission (FTC) website. Complaints can be filed through their website, too. Or, you could call them toll free at 1-877-FTC-HELP (1-877-382-4357).

Loans Covered By HOEPA

High-rate, high-fee loans are those HOEPA is about. HOEPA comes as amendment to the TILA - Truth-in-Lending Act and sets requirements for loans specified in TILA Regulation Z, also called Section 32. Reverse mortgage loans and HELOCs are not covered by HOEPA.

  • High-rate loans - first or second-lien loans with APR more than 8 or 10%, respectively, higher than a base index, usually the Treasury securities rates.
  • High-fee loans - loans where the borrower pays the higher of $561 at closing, or 8% of the loan amount. The $561 figure may change every year, adjusted by the Federal Reserve Board.
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