Which law is key in preventing predatory lending?

The Home Ownership and Equity Protection Act (HOEPA) is crucial in preventing predatory lending because it establishes specific requirements aimed at protecting borrowers from abusive lending practices, particularly those involving high-cost loans. This act was enacted as part of the Truth in Lending Act amendments and mandates disclosure requirements for lenders, ensuring that borrowers are fully aware of the terms and conditions of their loans.

HOEPA targets loans with high-interest rates and fees, requiring lenders to provide clear information on the costs associated with the loan, including prepayment penalties and other potential risks. By enforcing these guidelines, HOEPA seeks to equip consumers with the knowledge necessary to make informed borrowing decisions, thereby reducing the chances of falling victim to predatory practices.

The other options present alternative acts that either do not exist or do not have the specific focus on predatory lending as HOEPA does, making them less relevant in managing and preventing such harmful lending behaviors.