Which entities are exempt from the provisions of the HLPA?

The Home Loan Protection Act (HLPA) is designed to protect consumers by regulating lending practices. Certain entities are exempt from the provisions of the HLPA due to their inherent regulatory frameworks and oversight. Federally-chartered banks are one such entity that is exempt from the HLPA. This exemption is primarily due to the rigorous federal regulations that govern federally-chartered banks, which are deemed sufficient for consumer protection.

These banks are subject to the oversight of federal agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). As a result, they are not required to comply with the additional state-level regulations that the HLPA entails, as they are already under stringent federal guidelines that address similar consumer protection concerns.

The other entities mentioned operate under different regulatory requirements, and therefore are not exempt from the HLPA. State banks and local credit unions are subjected to state laws which include provisions of the HLPA. Private lending companies also typically fall under the jurisdiction of state laws and do not have the same level of federal oversight as federally-chartered banks.