Home Ownership and Equity Protection Act (HOEPA) Policy and Procedures

Description

The Home Ownership and Equity Protection Act (HOEPA) Policy and Procedures identifies which loan programs are subject to protections under the Home Ownership and Equity Protection Act (HOEPA). The procedures provide detailed explanations of the HOEPA coverage tests used to determine whether a loan falls under these protections.

The policy also explains how to maintain compliance when a loan meets the criteria for either a Higher-Priced Mortgage Loan (Section 35) or a High-Cost Mortgage Loan (Section 32). The primary goal is to ensure that all loans remain compliant with HOEPA requirements while protecting consumers from high-risk loan products that may violate HOEPA or the Ability-to-Repay/Qualified Mortgage (ATR/QM) rules.