Finance
Connecticut's Home Ownership and Equity Protection Act (HOEPA) provisions relate to:
ASetting maximum mortgage rates
BProtecting borrowers in high-cost home loans from abusive lending practices✓ Correct
CRegulating down payment assistance programs
DRequiring homeowners insurance on all mortgaged properties
Explanation
HOEPA (a TILA amendment) imposes additional requirements and restrictions on high-cost mortgage loans, protecting borrowers from predatory lending practices in loans with high rates or fees.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
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