What is the primary focus of the Home Ownership and Equity Protection Act (HOEPA)?

The Home Ownership and Equity Protection Act (HOEPA) primarily focuses on targeting abuses in subprime lending. This act was established to protect consumers from predatory lending practices often associated with high-cost mortgages. HOEPA sets certain requirements and restrictions on lenders that offer high-interest loans, ensuring transparency in lending terms and requiring disclosures that help borrowers understand the risks of their loans.

Additionally, by specifically addressing subprime lending, HOEPA aims to prevent lenders from exploiting individuals who may not have access to traditional loans, often leading to a cycle of debt that can result in foreclosure. It serves as an important regulatory measure to ensure that consumers, especially those with lower credit scores or financial instability, are treated fairly and informed adequately about their mortgage products.