428.207 Prepayment.
173 words·~1 min read·
/wi/chapter-428/428-207-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
428.207 Prepayment.
(1)A customer may prepay a covered loan at any time without penalty if the payment is made in the context of a refinancing of the covered loan and if the covered loan is held by the refinancing lender. This subsection does not prohibit the servicer of a covered loan from imposing a prepayment penalty, unless the servicer is also the lender and holds the loan at the time of the refinancing.
(2)Any prepayment penalty under this section is subject to all of the following limitations:
(a)A prepayment penalty is permitted only during the 36 months immediately following the date of consummation of a covered loan.
(b)A lender may not include a prepayment penalty in a covered loan unless the lender offers the customer the option of choosing a loan product without a prepayment penalty. The terms of the offer shall be in writing and initialed by the customer. The offer shall be in a clear and conspicuous format and include the following disclosure:
LOAN PRODUCT CHOICE DISCLOSURE