What is the Home Ownership and Equity Protection Act?

The Home Ownership and Equity Protection Act (HOEPA) is a law that was passed in 1994 in North Carolina in order to protect consumers from predatory lenders. The act seeks to ensure that consumers are protected when they are taking out mortgage loans and other lines of credit. It requires lenders to provide certain consumer protections when they are offering certain types of high-cost mortgages, such as those with adjustable rates, points and fees that are higher than those of other loans, and negative amortization plans. HOEPA requires lenders to disclose the terms of the loan in writing before the consumer agrees to it. It also requires them to provide certain consumer protections, such as a cap on the interest rate and fees that are charged, an afford ableness clause, late fees that are limited, and the right to cancel the loan within three days. Additionally, the lender must provide counselling services for consumers who are at risk of foreclosure. HOEPA is a very important law in North Carolina because it is designed to protect consumers by providing them with the information they need to make informed decisions about their lending options. It is important to understand the law in order to ensure you are properly protected when you take out a loan.

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What is the Home Ownership and Equity Protection Act?

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