Fixing HOEPA Violations
David Dickinson, BOL Guru Guru Bio
Question: How can a HOEPA violation be fixed? Would refunding charges and rewriting the loan under section 32 regulations be acceptable?
Answer: You can't fix this type of violation. You have closed the loan and advanced the money so the best option is to document the error, train the loan officer(s) and move on. Do not rewrite the loan because the customer has the right to rescind this loan because of the HOEPA violation. If you rewrite the loan, you are only trying to take away their rights. Courts have shown this is not acceptable and you can't take away someone's rights.
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