According to which law is a loan identified as high cost if the points and fees exceed 5%?

The Home Ownership Equity Protection Act (HOEPA) defines high-cost loans and sets specific criteria to identify them, including the threshold for points and fees. Under HOEPA, a loan is classified as high-cost when the total points and fees exceed 5% of the total loan amount. This law is specifically designed to protect consumers from predatory lending practices by imposing additional requirements on lenders when originating high-cost loans. These requirements include mandatory disclosures and provisions that aim to ensure borrowers are fully informed of the terms and risks associated with high-cost loans.

The other laws mentioned do not pertain specifically to the classification of loans based on points and fees. The Homeowners Protection Act focuses on private mortgage insurance cancellation, the Home Mortgage Disclosure Act relates to reporting mortgage lending data, and the Mortgage Assistance Relief Services law addresses foreclosure rescue services rather than defining loan costs. Therefore, HOEPA is the correct reference for identifying loans as high-cost based on the specified threshold.