What is required for a loan to be classified as a high-cost mortgage under HOEPA?

For a loan to be classified as a high-cost mortgage under the Home Ownership and Equity Protection Act (HOEPA), it must exceed specific thresholds related to the Annual Percentage Rate (APR) and fees. HOEPA establishes criteria to protect consumers from predatory lending practices, and the classification as a high-cost mortgage is based on whether the APR exceeds a certain percentage above the average prime offer rate or if the total points and fees exceed a certain percentage of the loan amount. This classification triggers additional disclosure requirements and protections for borrowers, making it important for lenders to understand these thresholds to ensure compliance with the law.

The other options do not directly relate to the criteria for identifying a high-cost mortgage under HOEPA regulations. For instance, documentation of income history, pre-approval from a government agency, or a specific down payment amount are not the standards used to determine if a mortgage falls into the high-cost category. The focus is squarely on the APR and fee limits as defining features.