Truth in Lending: 9.6.10.2.2 Rules for applications received on or after January 10, 2014
Effective January 10, 2014, prepayment penalties (regardless of duration or amount) are banned from loans that otherwise trigger HOEPA.805 Congress accomplished this result by removing the statutory exceptions to the ban.806 Note that because prepayment penalties are also a trigger for high-cost mortgages after this same effective date,807 if a loan has a prepayment penalty that brings it within the high-cost loan range, the penalty will auto