HOEPA Violations: High-Cost Mortgage Protections

A forensic loan audit is the most reliable way to determine HOEPA status. Your original loan documents — particularly the Truth in Lending disclosure and HUD-1 Settlement Statement — will show the APR, points, and fees. Compare these to the APOR at the time of your loan to determine if HOEPA triggers were met.

Yes. HOEPA violations provide grounds for loan rescission, affirmative defenses in foreclosure, and counterclaims for damages. The presence of HOEPA violations significantly strengthens your position in negotiations with the lender and can support a TRO to halt the foreclosure sale.

HOEPA is an amendment to TILA specifically targeting high-cost loans. While TILA applies to all consumer credit transactions, HOEPA only applies when the loan meets the "high-cost" threshold tests. HOEPA provides additional protections beyond TILA — including restrictions on loan terms and enhanced disclosure requirements.

A homeowner who believes their loan may contain HOEPA violations should begin by preserving all relevant documentation — including the original loan disclosures, Truth in Lending statement, HUD-1 Settlement Statement, and any communications with the lender. Consulting with a qualified attorney or a HUD-approved housing counselor can help evaluate whether the loan terms trigger HOEPA protections and whether violations exist. Homeowners may also consider submitting a complaint to the Consumer Financial Protection Bureau (CFPB), which has enforcement authority over HOEPA. For guidance on the CFPB complaint process, see our CFPB Complaint Guide. Filing a complaint creates a record but does not guarantee a specific outcome or independently stop a pending foreclosure.