Denying Loans Subject To HOEPA

Answered by:

Question:

We do not want to make any highcost home loans under any state laws or under HOEPA. If we do a rate and fees test during the processing of a loan application and determine that it does meet a highcost loan test, can we deny a loan on the basis that we do not want to make a loan that is subject to HOEPA or other highcost home loan restrictions or must we lower our rate and/or fees to avoid coverage?

Answer:

You don't have to make a loan to anyone for any reason. What are you going to tell your applicant? "This loan requires extra paper work that we don't want to complete."

Why not just provide the HOEPA disclosures and make the loan?

First published on BankersOnline.com 11/11/02