164k views
1 vote
What percentage is the fee threshold that triggers a HOEPA High Cost disclosure for a first mortgage in 2023?

1 Answer

5 votes

Final answer:

The fee threshold triggering a HOEPA High Cost disclosure for a first mortgage in 2023 is 5%. This discloses additional protections against predatory lending when points and fees exceed this percentage of the total loan amount.

Step-by-step explanation:

The percentage that triggers a High-Cost disclosure for a first mortgage under the Home Ownership and Equity Protection Act (HOEPA) in 2023 is the 5% fee threshold. If the total points and fees payable by the consumer at or before closing will exceed 5% of the total loan amount, then the loan is considered a high-cost mortgage and requires the lender to provide additional disclosures under HOEPA. This threshold is part of the regulations to provide consumers with protections against predatory lending practices.

User Sayse
by
8.2k points