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Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 128129  
Subject: Re: Definition of a pre-payment penalty Date: 12/9/2013 8:56 PM
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CC: My borrower would like to get a lower rate by agreeing to a prepay.

Lender: We don't do loans with prepay penalties.

CC: Why not?

Lender: They're not allowed under the Dodd-Frank Act.

CC: What do you mean? It says right here that…[quote]

Lender: Too bad…so sad. The Dodd-Frank Act is an inflexibly incorrigible mess, so we don't do prepay penalty loans. Full doc, high FICO, low LTV plain vanilla loans are what we do.

CC: B-b-b-but…

Lender: Have a nice day. [click]

So while technically the lender could jump through regulatory hoops to add a PPP, they won't because the Dodd-Frank Act is a 13,000 page convoluted mishmash of rules and regulations designed to ensnare even the most cautious lender.
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