Vote Smart's Synopsis:

Vote to pass a bill that limits the ability of lenders to impose prepayment penalties on subprime mortgages and establishes disclosure requirements for lenders.

Highlights:

- Permits lenders to impose a prepayment penalty if the mortgage is offered under a federal program, or if a full or partial repayment of principle is made within two years of the closing date or during a period ending 60 days before the first scheduled interest rate adjustment, whichever comes first (Sec. 3). - Requires lenders to disclose the amount of the initial payment, the annual percentage rate, the interest rate and if it is subject to change, the amount and date the percentage rate may reach its highest amount, and the amount of any payment made to the broker (Sec. 4). - Imposes a $5,000 to $20,000 per day fine on violators of the above agreements [sec. 7 (1) (a)].

Full Bill Text