Overview

In 1994, Congress enacted the Home Ownership and Equity Protection Act, or HOEPA, to amend the Truth in Lending Act, or TILA, and respond to anecdotal evidence of abusive lending practices in the home-equity lending market. Through Regulation Z, the Federal Reserve Board is authorized to implement regulations that promote informed consumer credit use and prohibit predatory mortgage lending. HOEPA requires creditors to disclose and comply with limitations in home-equity loan rates and fees. The Board also holds public hearings that assess the effectiveness of HOEPA regulations.

Regulatory Resources

Regulation Z

Federal Reserve Board of Governors

Hearings under the Home Ownership and Equity Protection Act (HOEPA)- 2000, 2006, 2007

Publications

Federal Trade Commission

Facts for Consumers (February 2009)
 

Federal Reserve Bank of Philadelphia’s Consumer Compliance Outlook

New Regulation Z Rules Enhance Protections for Mortgage Borrowers (Fourth Quarter 2008)

Federal Reserve Bank of St. Louis

The Impact of Local Predatory Lending Laws on the Flow of Subprime Credit (February 2006)

March 20, 2009

Governor Elizabeth A. Duke

Enforcement of Financial Consumer Protection Laws
Before the Committee on Financial Services, U.S. House of Representatives, Washington D.C.

June 14, 2007

Governor Randall S. Kroszner

Encouraging Responsible Mortgage Lending – Prospective Rulemaking Initiatives
At the public hearing under the Home Ownership and Equity Protection Act (HOEPA), Federal Reserve Board, Washington D.C.

March 27, 2007

Saundra F. Braunstein, Director, Division of Consumer and Community Affairs

Subprime Mortgages
Before the Subcommittee on Financial Institutions and Consumer Credit, Committee on Financial Services, U.S. House of Representatives