Which law mandates that the terms of “high-cost” mortgages be disclosed to borrowers?

The Home Ownership and Equity Protection Act (HOEPA) specifically requires that the terms of "high-cost" mortgages be disclosed to borrowers. This law, which is an amendment to the Truth in Lending Act (TILA), was enacted to provide additional protections for borrowers who are securing high-cost home loans.

Under HOEPA, lenders must inform borrowers about the costs associated with these loans, including associated fees and the potential risks of taking on such debt. This disclosure requirement ensures that borrowers are aware of the high costs associated with these mortgages, allowing them to make informed decisions.

While TILA also plays a significant role in consumer credit by providing standardized disclosures, HOEPA narrows this focus specifically to high-cost loans, thereby enhancing consumer protections in that particular segment of the mortgage market. ECOA and RESPA focus on different aspects of mortgage lending, such as preventing discrimination in lending and ensuring transparency regarding settlement costs, respectively, but they do not specifically address high-cost mortgage disclosures in the same way that HOEPA does.