California · Financial Code
FIN §4995.1: 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 perc
What this law says, in plain English
A licensed person cannot charge a prepayment penalty exceeding 2 percent on a higher-priced mortgage loan.
Read the full statutory text
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.
Verify at the official source: California legislative text
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