California Financial Code 4995.1 – Notwithstanding any other provision of law, the maximum amount of a …
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Notwithstanding any other provision of law, the maximum amount of a prepayment penalty that may be imposed by a licensed person in connection with a higher-priced mortgage loan shall not exceed 2 percent of the principal balance prepaid, for prepayment of the loan during the first 12 months following loan consummation or 1 percent of the principal balance prepaid, for prepayment of the loan during the second 12 months following loan consummation.
(Added by Stats. 2009, Ch. 629, Sec. 4. (AB 260) Effective January 1, 2010.)
Terms Used In California Financial Code 4995.1
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: includes any person, firm, partnership, association, corporation, company, limited liability company, syndicate, estate, trust, business trust, or organization of any kind. See California Financial Code 18