FHA Nixes Post-Payment Interest Charges On Mortgages
Law360, New York (August 27, 2014, 7:26 PM EDT) -- The Federal Housing Administration on Tuesday issued its final rule eliminating post-payment interest charges on mortgages paid in full, allowing mortgage lenders to charge interest only through the date a mortgage is paid and not beyond that.
The FHA said that borrowers who prepay FHA-insured mortgages will not have to make interest payments beyond the date their mortgage is paid in full. The rule, called Handling Prepayments: Eliminating Post-Payment Interest Charges, applies for FHA-insured mortgages closed on or after Jan. 21, 2015.
The rule explicitly prohibits lenders from charging borrowers post settlement interest, which the Consumer Financial Protection Bureau broadly defines...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!