Section 4995.1 Of Division 1.10. Higher-priced Mortgage Loans From California Financial Code >> Division 1.10.
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.