Home Ownership and Equity Protection Act of 1994

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In September 1994, President Bill Clinton signed into law the Home Ownership and Equity Protection Act of 1994, written by US Rep. Joseph P. Kennedy (D-Mass). The law requires certain disclosures and clamps restrictions on lenders of high-cost loans.[1][2]

Codified in Regulation Z at 12 CFR 226.32, it only applies to non-purchase money transactions.

The law also gives the Federal Reserve Board powers to adjust regulations as it sees fit. Critics of Alan Greenspan argue that he failed to properly use these powers when the subprime mortgage problems became apparent in 2005.[3]


  1. ^ "Some new protection on homeowner loans," Oct 13, 1994, The Boston Globe, Real Estate, p. A1
  2. ^ http://apps.americanbar.org/buslaw/committees/CL130000pub/newsletter/200708/natter.pdf
  3. ^ http://www.newsweek.com/id/159346