HW Ch 11 Read the following situations and answer the questions. Explain your answer Situation 1 Cathleen and Mark Davenport call METRO City Bank for rates on closed-end home-equity loans They want to install a new air conditioning system in their home, which will cost $6,000. They paid off their mortgage last year and have no other debts tied to their home. Burt Richardson quotesa loan for five years at 6 percent with an APR of 6.25 percent. The Davenports apply on Apail 14 and Burt closes the loan on May 1. For this loan the APR is 6.25 percent based on METRO's terms; total points and fees aze $200. The encrent CFPB interest rate limit is 8 percent and the points and fee amount to $425. Is the loan covered by HOEPA? Situation 2 Lacry and Wanda Bevins call METRO City Bank for tates on a closed-end home-equty loan. They want to repair their heating system, which will cost $6,000. They have paid off their mortgage and have no other debts associated with their home. Betty Reynolds quotes a loan with a fve-year term for 6 pecent and an APR of 6.20 pescent The Bevinses apply on Nov. 14 and Betty closes the loan on Dec. 1. The loan's APR of 6.20 peccent is based on the bank's terms, and the total points and fees ace $508. The Federal Reserve's published U'S. Treasncy secuaity yield is 3 peccent and total points and fees ace $425 Ia the loan covered ly HOEP4