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If a consumer occupies a dwelling as a primary residence do they also have to own the dwelling in order for the loan to be subject to HOEPA?
Example: Son owns a house and DOES NOT occupy the house. Mother lives in the house as her primary residence and DOES NOT own the house. Mother makes a loan secured by son’s house. Is this loan subject to HOEPA?
With the way both the statute and regulation are worded – no specific mention of ownership interest in the principal dwelling as a requirement for applicability or exclusion because lack thereof – I would say that HOEPA would apply to the transaction you have described, assuming no exemption applies.
Here is a link to the statute (https://www.law.cornell.edu/uscode/text/15/1639) and the regulation (https://www.gpo.gov/fdsys/pkg/CFR-2018-title12-vol9/pdf/CFR-2018-title12-vol9-sec1026-32.pdf).
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