Finance
Under the Home Ownership and Equity Protection Act (HOEPA), high-cost loans are subject to special protections. A loan is considered high-cost if its APR or points and fees exceed:
A6% above a comparable Treasury security rate
BSpecific thresholds above the Average Prime Offer Rate (APOR) established by the CFPB✓ Correct
CThe maximum rate allowed by Oregon usury laws
D10% of the total loan amount in fees
Explanation
HOEPA (as amended by the Dodd-Frank Act) defines high-cost mortgages based on thresholds set relative to the Average Prime Offer Rate (APOR): if the APR exceeds APOR by specified amounts, or if points and fees exceed specified percentages. High-cost loans have additional disclosure and substantive restrictions.
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