What law requires creditors to meet specific requirements for high-cost loans when certain thresholds are exceeded?

The Home Ownership Equity Protection Act (HOEPA) is the correct answer as it specifically addresses high-cost loans and sets forth requirements that creditors must meet when certain thresholds related to APR and total points and fees are exceeded. HOEPA is aimed at preventing predatory lending practices; it ensures that borrowers are provided with clear information regarding the costs of the loan, including any additional charges or risks associated with high-cost loans.

In contrast, the other options focus on different aspects of mortgage lending. The Home Mortgage Disclosure Act (HMDA) primarily requires lending institutions to collect and disclose data about their mortgage lending activities to ensure fair lending practices. The Homeowners Protection Act (HPA) pertains to private mortgage insurance (PMI) and governs the cancellation of PMI under certain conditions. The Mortgage Assistance Relief Services (MARS) regulation was designed to protect consumers from misleading practices related to mortgage loan modification services. While all these laws contribute to consumer protection in the mortgage market, HOEPA specifically targets the issue of high-cost loans and establishes the requirements for these creditors.