Which laws use the average prime offer rate (APOR) as a threshold?

The Home Ownership Equity Protection Act (HOEPA) and the Higher Priced Mortgage Loan Act (HPML) both utilize the average prime offer rate (APOR) as a critical threshold for determining certain lending disclosures and protections.

HOEPA specifically focuses on high-cost mortgages and establishes criteria based on the APOR to identify whether a loan meets the definition of a high-cost mortgage. This includes calculating the points and fees in relation to the APOR to determine if additional disclosures and protections must be applied to the borrower.

HPML similarly uses the APOR to classify loans that are considered higher-priced. The APOR is used as a benchmark to determine whether a loan's average annual percentage rate (APR) exceeds a certain threshold compared to the APOR, which then triggers specific requirements under the regulation, such as additional disclosures and protections for borrowers.

Understanding that these laws rely on the APOR illustrates their purpose in safeguarding consumers in situations where the loan terms might be considered unfavorable or predatory. Other options discussed do not apply the APOR in the same context or do not involve thresholds related to loan pricing, focusing instead on aspects like settlement procedures, credit opportunities, or disclosure acts.