Intentionally targeting borrowers in poor or underserved areas with expensive high cost loans is considered illegal under:

The practice of intentionally targeting borrowers in poor or underserved areas with expensive high-cost loans falls under the provisions of HOEPA, which stands for the Home Ownership and Equity Protection Act. This law was enacted to address predatory lending practices and to protect consumers from unfair and deceptive mortgage lending practices, particularly in vulnerable communities.

HOEPA specifically focuses on loans with high rates or fees, requiring lenders to provide additional disclosures and adhering to stricter regulations to ensure that borrowers are aware of the terms and costs associated with such loans. By targeting underserved populations with disproportionately high-cost loans, lenders not only exploit these individuals but also create barriers to homeownership and financial stability.

The other options address different aspects of lending and consumer protection:

• The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending but does not explicitly tackle predatory lending practices or high-cost loans.

• The Homeowners Protection Act (HPA) relates to private mortgage insurance and does not cover the illegal targeting of borrowers.

• The Real Estate Settlement Procedures Act (RESPA) aims to protect consumers by requiring disclosures related to the settlement process but does not directly address high-cost loans or the targeting of underserved borrowers.

Thus, HOEPA is the correct choice as it is designed specifically to combat predatory