Financial Code section 4995.1

Notwithstanding any other provision of law, the maximum amount of a prepayment penalty that may be imposed by a licensed person in connection with a higher-priced mortgage loan shall not exceed 2 percent of the principal balance prepaid, for prepayment of the loan during the first 12 months following loan consummation or 1 percent of the principal balance prepaid, for prepayment of the loan during the second 12 months following loan consummation.

Source: Section 4995.1, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=FIN§ionNum=4995.­1.­ (updated Jan. 1, 2010; accessed Jul. 7, 2025).

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Verified:
Jul. 7, 2025

§ 4995.1's source at ca​.gov