Finance (alternative)
In Maryland, 'prepayment penalty' clauses on mortgages are:
ARequired on all mortgages over $500,000
BRegulated — many loan types (FHA, VA) prohibit them; QM loans under Dodd-Frank have restrictions✓ Correct
CFreely permitted on all loan types
DRequired by MREC on investment property loans
Explanation
Prepayment penalties are prohibited on FHA and VA loans. Dodd-Frank restricts them on Qualified Mortgages (QMs).
Related Maryland Finance (alternative) Questions
- In Maryland, the 'primary mortgage market' refers to:
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