This bill would let lenders and business borrowers agree to any interest rate and prepayment penalties on mortgage loans secured by single-family homes, if the loan is for business, commercial, or investment use. For personal, family, or household loans, existing protections remain, such as prepayment penalties being capped at 1% if paid off within 3 years and banned after that, deposits can't be required except for escrow, and extra fees or points are restricted. Interest must be charged only on unpaid loan balances.
