This dilemma is talked about with regards to problems #13 and #14, above. Conditions relating to prepayment charges have already been integrated in to the draft legislation connected as Appendix # 1; see area 3 and area 7 of the proposed legislation.
Problem #22: needing that “unpaid balance” figures reflect extra funds needed as prepayment charges
Because a lot of customers have told OCCR which they didn’t understand these people were at the mercy of a prepayment penalty until they attempted to cover down their loan early, this proposition will have needed that each and every time the lending company notified the debtor associated with unpaid stability to their loan (for instance, upon demand, or with every month-to-month declaration, or at year-end), the financial institution is expected to include into that stability the prepayment penalty, to offer a detailed image of the particular buck quantity essential to pay back the mortgage.
We felt that the proposition ended up being a straightforward and revolutionary solution to prevent “payoff surprise. ” Nevertheless, we now have selected never to consist of it inside our proposed legislation.