428.207

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428.207 Prepayment.

428.207(2)

(2) Any prepayment penalty under this section is subject to all of the following limitations:

428.207(2)(a)

(a) A prepayment penalty is permitted only during the 36 months immediately following the date of consummation of a covered loan.

428.207(1)

(1) A customer may prepay a covered loan at any time without penalty if the payment is made in the context of a refinancing of the covered loan and if the covered loan is held by the refinancing lender. This subsection does not prohibit the servicer of a covered loan from imposing a prepayment penalty, unless the servicer is also the lender and holds the loan at the time of the refinancing.

428.207(2)(c)

(c) A prepayment penalty may not exceed 60 days’ interest at the contract rate on the amount prepaid on fixed-rate covered loans over $25,000 if the borrower prepays more than 20 percent of the original loan amount within 36 months immediately following the date of consummation of the covered loan.

428.207(2)(d)

(d) A prepayment penalty may not be collected on fixed-rate covered loans of $25,000 or less, on adjustable rate loans, or on those fixed-rate covered loans over $25,000 not specified in para. (c).