United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2001_register executive 2010-09-24 article Rules and Regulations D09002ee1c81ca2e5 D09002ee1c81ca3c5 United States Federal Reserve System originator org United States Government Agency or Subagency The Board is adopting amendments to the provisions of Regulation Z (Truth in Lending) that implement the Home Ownership and Equity Protection Act (HOEPA). HOEPA was enacted in 1994, in response to evidence of abusive lending practices in the home-equity lending market. HOEPA imposes additional disclosure requirements and substantive limitations (for example, restricting short-term balloon notes) on home-equity loans bearing rates or fees above a certain percentage or amount. The Board's amendments to Regulation Z broaden the scope of mortgage loans subject to HOEPA by adjusting the price triggers used to determine coverage under the act. The rate-based trigger is lowered by two percentage points for first-lien mortgage loans, with no change for subordinate-lien loans. The fee-based trigger is revised to include the cost of optional credit insurance and similar debt protection products paid at closing. The amendments restrict certain acts and practices in connection with home-secured loans. For example, creditors may not engage in repeated refinancings of their HOEPA loans over a short time period when the transactions are not in the borrower's interest. The amendments also strengthen HOEPA's prohibition against extending credit without regard to consumers' repayment ability, and enhance disclosures received by consumers before closing for HOEPA-covered loans. 66 FR 65604 https://www.govinfo.gov/app/details/FR-2001-12-20/01-31264 01-31264 fr20de01-3 6210-01-P Regulation Z Docket No. R-1090 https://www.govinfo.gov/app/details/FR-2001-12-20/01-31264 https://www.govinfo.gov/content/pkg/FR-2001-12-20/html/01-31264.htm https://www.govinfo.gov/content/pkg/FR-2001-12-20/pdf/01-31264.pdf Advertising Federal Reserve System Mortgages Reporting and Recordkeeping Requirements Truth in Lending 19 p. 65604 65622 66 FR 65604 Title 12 Part 226 12 CFR Part 226 Truth in Lending; Federal Register Vol. 66, Issue RULE 01-31264 FEDERAL RESERVE SYSTEM 2001-12-20 2002-10-01 Regulation Z Docket No. R-1090 6210-01-P 01-31264 Final rule.

The Board is adopting amendments to the provisions of Regulation Z (Truth in Lending) that implement the Home Ownership and Equity Protection Act (HOEPA). HOEPA was enacted in 1994, in response to evidence of abusive lending practices in the home-equity lending market. HOEPA imposes additional disclosure requirements and substantive limitations (for example, restricting short-term balloon notes) on home-equity loans bearing rates or fees above a certain percentage or amount. The Board's amendments to Regulation Z broaden the scope of mortgage loans subject to HOEPA by adjusting the price triggers used to determine coverage under the act. The rate-based trigger is lowered by two percentage points for first-lien mortgage loans, with no change for subordinate-lien loans. The fee-based trigger is revised to include the cost of optional credit insurance and similar debt protection products paid at closing. The amendments restrict certain acts and practices in connection with home-secured loans. For example, creditors may not engage in repeated refinancings of their HOEPA loans over a short time period when the transactions are not in the borrower's interest. The amendments also strengthen HOEPA's prohibition against extending credit without regard to consumers' repayment ability, and enhance disclosures received by consumers before closing for HOEPA-covered loans.

The rule is effective December 20, 2001; compliance is mandatory as of October 1, 2002. Minh-Duc T. Le, Attorney, Daniel G. Lonergan, Counsel, or Jane E. Ahrens, Senior Counsel, Division of Consumer and Community Affairs, at (202) 452-3667 or 452-2412; for users of Telecommunications Device for the Deaf ("TDD") only, contact (202) 263-4869. Advertising Federal Reserve System Mortgages Reporting and Recordkeeping Requirements Truth in Lending Truth in lending (Regulation Z): Home-equity lending market Abusive lending practices; additional disclosure requirements and substantive limitations for certain loans; implementation; and predatory lending practices, http://www.federalreserve.gov/community.htm Vol. 66, no. 245 Office of the Federal Register, National Archives and Records Administration 2001-12-20 continuing daily deposited born digital 225 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2001-12-20 P0b002ee180a152ce 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr20de01 https://www.govinfo.gov/app/details/FR-2001-12-20 https://www.govinfo.gov/content/pkg/FR-2001-12-20/pdf/FR-2001-12-20.pdf https://www.govinfo.gov/content/pkg/FR-2001-12-20/xml/FR-2001-12-20.xml fdlp 65597 65810 DGPO 2010-09-24 2024-06-08 FR-2001-12-20 machine generated eng FR FR-2001-12-20 66 245