What Loans does HOEPA apply towards?
pplies to the same loans that are subject to a right of rescission: closed-end home equity loans and closed-end loans made to refinance existing mortgages
What is a Higher-Priced mortgage loan?
is any mortgage (purchase-money or non-purchase-money) secured by a consumer’s principal dwelling with an Annual Percentage Rate (APR) exceeding the “average prime offer rate” on prime loans (published by the Federal Reserve Board (FRB)) by at least 1.50 percentage points (1.50%) for first-lien loans and 3.50 percentage points (3.50%)for subordinate-lien loans.
What is an APR derived from average interest rates, points, and other loan pricing terms offered to consumers by a representative sample of creditors for mortgage transactions with low-risk pricing characteristics.
average prime offer rate