Finance
Which federal law prohibits certain loan terms such as prepayment penalties and balloon payments on high-cost mortgage loans?
ARESPA
BTILA/HOEPA✓ Correct
CECOA
DFIRREA
Explanation
The Home Ownership and Equity Protection Act (HOEPA), an amendment to TILA, prohibits certain abusive lending practices such as prepayment penalties and balloon payments on high-cost mortgages.
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