Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high-cost" mortgages?

The Home Ownership and Equity Protection Act (HOEPA) is the correct answer because it specifically addresses the need for extra protection for borrowers in connection with high-cost mortgages. HOEPA was enacted as an amendment to the Truth in Lending Act (TILA) and introduced stringent disclosure requirements that lenders must follow when dealing with high-cost loans. This includes clear disclosures about the costs and terms of the loan, which were designed to help consumers make informed decisions and protect them from predatory lending practices such as equity stripping—where lenders take advantage of borrowers by encouraging them to take out more debt against their home equity than they are capable of repaying.

This act specifically targets high-cost mortgages, offering protection through its provisions that prohibit certain abusive practices, ensuring consumers are safeguarded against overly aggressive lending tactics that may exploit their financial vulnerabilities. By establishing these requirements and prohibitions, HOEPA plays a crucial role in promoting transparency in the lending process and safeguarding the interests of consumers involved in high-cost mortgage transactions.