Prepayment

Mortgages & Lending

New Federal Restriction on Prepayment Penalties Won’t Apply to FHA Interest Charge

by Christina Inman | November 7, 2009

On October 1, new federal lending rules took effect under HOEPA–the Home Ownership and Equity Protection Act.  One that will benefit consumers most is a restriction on prepayment penalties for higher-priced loans (those with an interest rate 1.5% above prime).  No longer will borrowers need to worry about an excessive penalty for paying off their [...]

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