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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 128370  
Subject: Re: Definition of a pre-payment penalty Date: 12/9/2013 10:09 PM
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"CC: My borrower would like to get a lower rate by agreeing to a prepay."
How much rate buydown would the permissible prepayment penalty allow?

"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]"

Have you actually had this conversation or is it all hypothetical in your head?

"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, . . ."

What regulatory hoop jumping would be required by Dodd-Frank, with respect to a permitted prepayment penalty?

Arm waving and general gnashing of teeth does not really answer the question.
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