Which regulation determines if an APR exceeds the APOR for high-cost loans?

The correct regulation that determines if an APR (Annual Percentage Rate) exceeds the APOR (Average Prime Offer Rate) for high-cost loans is HOEPA, which stands for the Home Ownership and Equity Protection Act. HOEPA is part of the Truth in Lending Act (TILA) and was specifically designed to address certain predatory lending practices by providing additional protections for borrowers who are considered high-risk.

Under HOEPA, a loan is classified as high-cost if its APR exceeds a specified threshold above the APOR. If a loan meets this criteria, it triggers certain disclosure requirements and protections for the borrower, aiming to ensure that they are informed about the terms and costs associated with the loan. This regulation is crucial for preventing consumers from being subjected to unfair lending practices, particularly in the context of high-cost mortgages where borrowers may be more vulnerable.

The other options do not govern the APR in relation to the APOR:

• MDIA (Mortgage Disclosure Improvement Act) deals mainly with timely disclosure of loan terms but does not relate directly to high-cost loans or APOR.

• ECOA (Equal Credit Opportunity Act) focuses on preventing discrimination in lending based on race, color, religion, national origin, sex, marital status, or age, rather than setting APR