Home Ownership Equity Protection Act
HOEPA applies to refinancing and home equity loans. It addresses deceptive and unfair practices in home equity lending. This law says that a mortgage assignee is subject to all claims and defenses that a borrower could have asserted against the original lender. In other words, a mortgage assignee is prohibited from claiming to be a holder in due course and hiding behind the fact that it did not make the loan. It also governs the interest and fees that can be charged on refinanced and home equity loans.