Finance
In Texas, the 'prepayment penalty' provision of a conventional mortgage must be disclosed:
AOnly at closing
BIn the Loan Estimate and Closing Disclosure under TRID✓ Correct
COnly if the borrower asks
DThrough a separate TREC disclosure form
Explanation
Under TRID, any prepayment penalty must be disclosed in the Loan Estimate (section B or H) and in the Closing Disclosure. Prepayment penalties are also disclosed in the loan's promissory note. They are prohibited on most consumer mortgages under Dodd-Frank.
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