If a mortgage meets the points or fees thresholds under the HLPA, which of the following is prohibited?

The prohibition under the Home Loan Protection Act (HLPA) specifically targets the financing of points and fees when they exceed certain thresholds. In this case, if the total points and fees amount to more than 5% of the loan amount or $800 (whichever is greater), the mortgage would be considered high-cost, and financing those excessive points and fees is not permitted. This provision is designed to protect borrowers from predatory lending practices that could lead to adverse financial consequences.

The other options do not fall under the same restrictions as outlined in the HLPA. Charging a late fee, for instance, is a common practice in mortgage loans and can be structured in a way that complies with legal standards. Similarly, offering discounts on loan fees and not providing a detailed fee overview, while potentially subject to consumer protection regulations, do not directly violate the specific prohibitions regarding financing excessive points and fees. Hence, the focus of the HLPA's restrictions is firmly centered on the scrutiny of financing high levels of points and fees, which is why it is crucial for lenders to adhere to those thresholds to ensure compliance and protect borrowers.