Page:United States Statutes at Large Volume 124.djvu/2176

 124 STAT. 2150 PUBLIC LAW 111–203—JULY 21, 2010 effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the 6th sentence of section 305(a)(2) the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)); and ‘‘(III) by 3.5 or more percentage points, in the case of a subordinate lien residential mortgage loan. ‘‘(2) PUBLICATION OF AVERAGE PRIME OFFER RATE AND APR THRESHOLDS.—The Board— ‘‘(A) shall publish, and update at least weekly, average prime offer rates; ‘‘(B) may publish multiple rates based on varying types of mortgage transactions; and ‘‘(C) shall adjust the thresholds established under sub- clause (I), (II), and (III) of paragraph (1)(B)(ii) as necessary to reflect significant changes in market conditions and to effectuate the purposes of the Mortgage Reform and Anti-Predatory Lending Act. ‘‘(3) PHASED-OUT PENALTIES ON QUALIFIED MORTGAGES.— A qualified mortgage (as defined in subsection (b)(2)) may not contain terms under which a consumer must pay a prepayment penalty for paying all or part of the principal after the loan is consummated in excess of the following limitations: ‘‘(A) During the 1-year period beginning on the date the loan is consummated, the prepayment penalty shall not exceed an amount equal to 3 percent of the outstanding balance on the loan. ‘‘(B) During the 1-year period beginning after the period described in subparagraph (A), the prepayment pen- alty shall not exceed an amount equal to 2 percent of the outstanding balance on the loan. ‘‘(C) During the 1-year period beginning after the 1- year period described in subparagraph (B), the prepayment penalty shall not exceed an amount equal to 1 percent of the outstanding balance on the loan. ‘‘(D) After the end of the 3-year period beginning on the date the loan is consummated, no prepayment penalty may be imposed on a qualified mortgage. ‘‘(4) OPTION FOR NO PREPAYMENT PENALTY REQUIRED.—A creditor may not offer a consumer a residential mortgage loan product that has a prepayment penalty for paying all or part of the principal after the loan is consummated as a term of the loan without offering the consumer a residential mortgage loan product that does not have a prepayment penalty as a term of the loan. ‘‘(d) SINGLE PREMIUM CREDIT INSURANCE PROHIBITED.—No creditor may finance, directly or indirectly, in connection with any residential mortgage loan or with any extension of credit under an open end consumer credit plan secured by the principal dwelling of the consumer, any credit life, credit disability, credit unemploy- ment, or credit property insurance, or any other accident, loss- of-income, life, or health insurance, or any payments directly or indirectly for any debt cancellation or suspension agreement or contract, except that— Time periods. Deadline.