Truth in Lending: 10.4.3.6 Higher-Priced Mortgage Loans
In rulemaking in July 2008, the FRB added a new category of mortgage loans that, like HOEPA loans, are subject to substantive prohibitions, effective October 1, 2009.575 These loans, called, higher-priced loans, were intended to cover the subprime market.576 The FRB defined practices that it believed were “so clearly injurious on balance to consumers within the subprime market that they should be categorically banned in that market.”577