What are the prohibited acts and practices under the ACT?
The following only apply in certain cases. The act requires the following if applicable. Home Improvement Contracts Any check to a home improvement contractor must be payable to the consumer or jointly to the consumer and the contractor. Alternatively, this can be through an escrow agent in accordance with terms established in a written agreement signed by the consumer, the creditor and the contractor. Notice to Assignee If the mortgage is sold or assigned, a notice must be furnished to the buyer. Refinancings within one-year period During the first year of the HOEPA loan, the creditor shall not refinance any HOEPA loan to the same borrower into another HOEPA loan, unless the refinancing is in the borrower’s interest. A creditor (or assignee) is prohibited from engaging in acts or practices to evade this provision, including a pattern or practice of arranging for the refinancing of its own loans by affiliated or unaffiliated creditors, or modifying a loan agreement (whether or not the
