III. Trendsetting predatory credit laws and regulations
HOEPA try an excellent landended TILA to provide specific borrowers that have protections against money that have excessively rates of interest or costs. HOEPA’s intention would be to cover the present security away from people off predatory refinancing methods, therefore its defenses was basically limited by re-finance mortgages. Instead of forbidding high-prices fund, HOEPA established interest and you can fee thresholds that brought about then revelation standards and prohibitions on certain financing terminology, and prepayment punishment for fund. HOEPA including called for loan providers to confirm the debtor can pay the mortgage.
When you look at the 1999, New york passed the initial state-level anti-predatory credit laws.
