Under what conditions does HOEPA apply regarding points and fees?

HOEPA, which stands for the Home Ownership and Equity Protection Act, applies when a loan has certain characteristics related to interest rates and fees. Specifically, it sets thresholds regarding points and fees for high-cost mortgage loans.

The correct answer reflects that HOEPA is applicable based on specific criteria that include both high-cost loans and those that may fall below certain thresholds. This means that for both high amounts, such as those exceeding certain limits on points and fees, and lower amounts, HOEPA generates protections for consumers, ensuring that they are not subjected to excessively high fees or problematic loan terms.

For loans that exceed a certain dollar amount or fall below specific thresholds, there are particular requirements that must be adhered to in order to comply with HOEPA regulations. This incudes measures intended to protect borrowers from abusive lending practices, regardless of the loan amount, thus underscoring the law's role in consumer protection across various types of loans.