The most notable points in the regulatory amendments includelowering the annual percentage rate requiring lenders to gatherdocumentation showing consumers' ability to repay HOEPA loans, andadjusting fee-based triggers to include amounts paid at closing forloss-of-income insurance and other debt-protection products.Another key provision prohibits a creditor from holding any loansubject to HOEPA from refinancing the loan within twelve months ofits origination.

"MBA is genuinely concerned that the Board's decision tofinalize these rules could result in reductions of creditavailability to those consumers that are most in need," MBAChairman-Elect John Courson says in a news release. He continues,"Under the new provisions lenders will be thrust in an unfairposition of having to divine the definition that a judge will giveto the ambiguous term of 'borrower's interest.' "

MBA Director of Regulatory Affairs Rod Alba tells GlobeSt.comthat the problem of predatory lending goes beyond what the Board'sregulatory changes can accomplish. He says the amendments will notwork, "unless you increase enforcement, increase education andreform the current system of disclosure that exists." Albacontinues, "[the changes] are well intentioned attempts at goingafter some of the more pernicious practices--the board should becommended for that, but this will simply not resolve the fraudissues that are causing the predatory lending going on."