Finance
Under the Home Ownership Equity Protection Act (HOEPA), high-cost mortgages in Pennsylvania must include additional disclosures because:
AAll Pennsylvania mortgages are considered high-cost
BThese loans have high interest rates, fees, or points that may indicate predatory lending✓ Correct
CPHFA requires HOEPA disclosures for all programs
DHOEPA only applies to Pennsylvania mortgages over $1,000,000
Explanation
HOEPA imposes additional disclosure requirements and restrictions on high-cost mortgages (those with APRs or fees exceeding specified thresholds above the average prime rate). These protections aim to prevent predatory lending practices by requiring advance disclosure and prohibiting certain abusive loan terms.
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