Final answer:
The Home Ownership and Equity Protection Act (HOEPA) and the Higher Priced Mortgage Loan Act (HPML) protect consumers in mortgage transactions by regulating the mortgage industry and ensuring fairness and transparency in loan terms and practices.
Step-by-step explanation:
The Home Ownership and Equity Protection Act (HOEPA) and the Higher Priced Mortgage Loan Act (HPML) protect consumers in mortgage transactions. These acts were implemented to regulate the mortgage industry and ensure that borrowers are not subjected to unfair or predatory lending practices.
They require lenders to provide certain disclosures to borrowers, establish limitations on loan terms, and impose penalties for non-compliance. By doing so, these acts aim to prevent abusive lending practices and promote transparency and fairness in mortgage transactions.