Good morning! If someone could assist me with an Alabama question, I would be most grateful. I received the following from one of our attorneys and have not been able to locate the entire regulation. There is no section 155 in the Administrative Code, nor can I pull up anything with a text search. Am I totally off base here?
"Prepayment penalties may be provided for in a simple interest transaction where the amount financed exceeds $2,000, the lender is an approved mortgagee under the National Housing Act or exempt from licensing under the Consumer Credit Act; or the lender is a trust institution or an exempt trust. In all other transactions, a prepayment penalty is not permitted. (Admin. Reg. 155-2-2.11.)"
>From Pratt's State Regulation of Second Mortgages and Home Equity Loans
Thanks for you help!
Sylvia Arakelian
Jaffe, Raitt, Heuer & Weiss
One Woodward Avenue, Suite 2400
Detroit, MI 48226
Direct Dial: 313/964-8261
Mail to: sarakelian@jafferaitt.com
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