Consumer Credit Regulation: 5.8.7.1.3 The Truth in Lending Act’s rebate requirements for mortgage loans
For high-cost mortgage loans consummated after October 1, 1995, a rule adopted under the Home Ownership and Equity Protection Act of 1994 (HOEPA) prohibits the use of the Rule of 78s when a creditor calculates a rebate of unearned precomputed interest due to loan acceleration as a result of default.467 The rule requires a refund of interest but not other charges, such as points, that are considered finance charges.468