We are an OTS regulated shop and am seeking confirmation from a CA Compliance Officer on late fees for residential mortgage loans.

Our investor is charging 6% late fees after 15 days. Is this permissible in CA?

Thanks in advance!

I believe you want to look to California Civil Code §2954.4 which states that for a loan secured by a mortgage or deed of trust on a single-family owner-occupied dwelling, your late fee cannot exceed either 6% of the installment due applicable to the payment of pirncipal and interest on the loan or $5, whichever is greater. A payment cannot be considered late until at least 10 days following the due date.