This act amended existing laws in an effort to prevent abusive practices in home-equity lending.
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.
Enforcement of Financial Consumer Protection Laws
Before the Committee on Financial Services, U.S. House of Representatives, Washington D.C.
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.
Before the Subcommittee on Financial Institutions and Consumer Credit, Committee on Financial Services, U.S. House of Representatives