The potential borrower should receive a list of homeownership counseling within three days from the date of application from the lender. The lender then must confirm stating that the borrower did receive the counseling.<\/b><\/p>

High-cost loans such as mortgage refinance, home purchases, home equity line of credit, and home equity loans are types that fall under the coverage of the HOEPA act.\u00a0<\/b><\/p>

And loans such as new construction loans, reverse mortgages, USDA loans, and loans financed by HFA are the types of home loans that are exempted from the HOEPA coverage.<\/b><\/p>

High-cost mortgages under the HOEPA act must have taxes and insurance escrowed in the monthly payments. There should not be any balloon payments for the loans.\u00a0<\/b><\/p>

The points and fees must not be financed into the loan. The interest rate should not increase in case of default. There should be no financing for any type of insurance.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t