Help! We've got our first HOEPA covered loan (APR triggered). Based on a High Cost-High Rate Loan Fed/State Law Comparison that I printed from BOL a while back, it states federal law prohibits any fee, penalty or charge to cure default. I cannot find support for this in Reg. Z, 226.34, only the reference to prepayment penalties in 226.32. Am I totally missing something?
Our Laser Pro promissory note's LENDER'S RIGHTS and ATTORNEY'S FEES sections allow the bank to charge reasonable collection costs in event of default, and attorney fees and expenses if applicable.
Does anyone have guidance on this?