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. (accessed May 10, 2025).

4995
4995.1
4995.2
4995.3
4995.4
4995.5
4995.6

Last Updated

May 10, 2025

§ 4995.1’s source at ca.gov

Stay Connected

Join thousands of people who receive monthly site updates.

Get Legal Help

The State Bar of California runs a service for finding an attorney in good standing. Initial consultations are usually free or discounted: Certified Lawyer Referral Services Directory

Committed to Public Service

We will always provide free access to the current law. In addition, we provide special support for non-profit, educational, and government users. Through social entrepreneurship, we’re lowering the cost of legal services and increasing citizen access.

Navigate

California:	Codes
Colorado:	C.R.S.
Nevada:	NRS
New York:	Laws
Oregon:	OAR, ORS
Texas:	Statutes
World:	Rome Statute, International Dictionary

Location: https://california.public.law/codes/financial_code_section_4995.1

Original Source: Section 4995.1, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FIN§ionNum=4995.1. (last accessed May 10, 2025).