| Under
this law, your loan is subject to the protections in
HOEPA if:
- The annual percentage
rate (APR) is 10 points (10 percent) higher than the
rate on a Treasury bill for the same length of time
(see, www.stocktrader.com
and go to "Useful Resources" and then "Yield
Curve" for T-Bill rates).
- The total amount of fees paid
by the consumer at or before loan closing is more
that 8% of the total loan amount and at least $451.00.
Under HOEPA, you are
entitled to receive from a lender certain disclosures
in writing at least three business days before closing.
This information includes:
- A notice that the
consumer could lose his/her home and any money put
into it if he/she does not meet his/her obligations
under the loan;
- The annual interest rate, amount
of payments, and if applicable, certain variable rate
information.
HOEPA also bans from high-rate,
high-fee loans such terms as balloon payments due in
less than five years, increasing interest rate at default,
and most prepayment penalties.
Lenders are prohibited from loaning money to consumers
without regard to the consumer's ability to repay the
loan (called "asset-based lending"), and cannot
make direct payments to home improvement contractors.
For more information on abusive lending
practices, log onto http://www.ftc.gov
and click on the "Consumer Protection" link.
Ohio Fair Credit Area
When it comes to protecting your credit record, fighting to keep debt collectors
honest and fair, and defending your consumer rights and repossession rights,
we’re here to help you. And we've added a Ohio
Fair Credit section to inform you.
CONTACT
AN ATTORNEY
If you have questions about a loan
that you have or are considering, or simply feel that
you have been a victim of an unscrupulous lender, contact
an attorney for help. For more information
call 1-888-331-6422.
For more detailed info on Mortgage
Fraud, how it
hurts all of us, where in the U.S. it happens the most,
and explanations of common mortgage fraud schemes,
click
here.
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