When we have a HPML loan -fixed rate -are we prohibited from including a prepayment penalty provision for the first two years after consummation? Or is it stating that we can impose a prepayment penalty but for only the first two years?

You are prohibited from including a prepayment penalty during the first two years following consummation.

September that is not how I read it. It says "The penalty will not apply afterthe two-year period following consummation.

I have a question also. We have a minimum interest charge on our loans. The note states "Minimum Interest Charge - I agree to pay a minimum interest charge of $10.00 if I pay this note off before you have earned that much in interest." Would this qualify as a prepayment penalty? The definition of prepayment penalty in the Reg. says "...a penalty for paying all or part of the principal before the date on which the principal is due. A prepayment penalty includes computing a refund of unearned interest by a method that is less favorable to the consumer than the actuarial method...."