Final answer:
HOEPA does not typically apply to HELOCs as it primarily covers home equity loans, refinances, and closed-end mortgages, but HELOCs are regulated under different federal laws, including Regulation Z.
Step-by-step explanation:
The Home Ownership and Equity Protection Act (HOEPA) applies to certain home equity loans, refinances, and closed-end mortgages, but it does not typically apply to Home Equity Lines of Credit (HELOCs).
HOEPA is part of the Truth in Lending Act and provides added protections to consumers, such as requiring additional disclosures and banning some loan features that are considered predatory. However, in response to the financial crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act expanded HOEPA's scopes in some aspects, and HELOCs are covered under different federal regulations, primarily Regulation Z of the Truth In Lending Act, which is enforced by the Consumer Financial Protection Bureau (CFPB).
It's also important to note that lenders must conduct a review of the borrower's ability to repay for both HELOCS and loans covered under HOEPA.