Final answer:
The Home Ownership and Equity Protection Act (HOEPA) of 1994, which is an amendment to the Truth in Lending Act, established disclosure requirements and banned abusive lending practices such as equity stripping in "high cost" mortgages.
Step-by-step explanation:
The Act that amended the Truth in Lending Act by establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high cost" mortgages is the Home Ownership and Equity Protection Act (HOEPA) of 1994. This Act was an amendment to the Truth in Lending Act which provides protections against some of the negative aspects of certain high-cost mortgages.
The HOEPA also ensures that borrowers of these types of loans are given additional disclosures before the loans are finalized.
HOEPA was created in response to various lending abuses and to protect homeowners from predatory lending practices. It addresses equity stripping and high-interest loans that can lead to financial issues for the homeowner, including foreclosure.