HOEPA prohibits a lender from engaging in a pattern or practice of extending HOEPA loans without regard to the borrower's ability to repay from sources other than the encumbered home's equity. 12 CFR § 226.34.
Remedies available to borrowers where a HOEPA violation is present include all those under TILA, including rescission. In addition, where the lender's failure to comply with HOEPA is material, a borrower may recover an amount equal to the sum of all finance charges and fees paid in the transaction. 12 CFR § 226.23. Further, all claims and defenses that arise under any non-TILA, non-HOEPA theory against the original lender may be asserted against a subsequent purchaser or assignee of the loan.
