Fed Rethinks Trigger Action, ‘Broader’ Approach Possible
April 23, 2001
The Federal Reserve Board is reportedly considering keeping high-cost loan triggers where they are in favor of a broader approach that could extend the Home Ownership and Equity Protection Act to a larger number of mortgage loans. Industry warnings of lender flight from a number of markets due to the lowering of HOEPA triggers apparently have caused the Fed to reevaluate its proposal, according to Robert Cook, a senior fair lending specialist at the Fed.