Mortgage Lending: 9.10.5 HOEPA Loans
The Home Ownership and Equity Protection Act (HOEPA), enacted to curb equity-skimming in high-cost home equity lending, prohibits prepayment penalties.452 As originally enacted, its protections applied only to closed-end home equity loans that met one of two alternative cost thresholds, one based on the APR and the other on the total amounts of points and fees charged in the transaction.453