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#2182728 - 06/22/18 01:46 PM Prepayment Penalties/Early Termination Fees
Couples Offline
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Joined: Apr 2009
Posts: 280
The Igloo
I am under the impression it is against the law in the state of PA to charge a prepayment penalty/early termination fee on a home equity loan or home equity line of credit and a mortgage below the "base figure" amount. Actually, I was told this by an employee of the PA Department of Banking.

However, I see early termination fees in advertisements for home equity lines of credit at other Banks. What are other peoples thoughts on this matter? Did I get bad info from the DOB employee?

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#2182748 - 06/22/18 02:55 PM Re: Prepayment Penalties/Early Termination Fees Couples
SwPa Offline
Junior Member
Joined: Oct 2013
Posts: 25
I believe the position of the Department of Banking is based upon Act 6 - see citations in: http://www.dobs.pa.gov/Documents/Interpr...age%20loans.pdf

However, there may be some contrary authority under federal law which does permit these prepayment penalties.

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#2182761 - 06/22/18 03:25 PM Re: Prepayment Penalties/Early Termination Fees Couples
Couples Offline
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Joined: Apr 2009
Posts: 280
The Igloo
I have read that, and frankly, can't understand what it is saying.

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#2251818 - 04/05/21 06:19 PM Re: Prepayment Penalties/Early Termination Fees Couples
Luv2run Offline
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Joined: Jan 2015
Posts: 469
Did you ever determine what this is saying? I cannot figure it out either.
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