Fed Says No HOEPA Ban on Short Term, Higher-Priced Balloon Loans
November 23, 2009
Despite restrictions in the Truth in Lending Act’s newly revised Regulation Z on higher-priced short-term balloon loans, there are ways lenders can originate such loans and still comply with “repayment ability” requirements, according to the Federal Reserve Board. In guidance issued Nov. 9, the Fed provided lenders some clarification regarding Reg Z’s repayment ability rule for...