Document Updates: Enhanced Prepayment Penalty Addendum (Cx12387), Enhanced Prepayment Penalty Rider (Cx12388), and Enhanced Prepayment Penalty Disclosure (Cx12389)

Wis. Stat. § 428.207(2)(b) states:

(b) A lender may not include a prepayment penalty in a covered loan unless the lender offers the customer the option of choosing a loan product without a prepayment penalty. The terms of the offer shall be in writing and initialed by the customer. The offer shall be in a clear and conspicuous format and include the following disclosure:

LOAN PRODUCT CHOICE DISCLOSURE

I was provided with an offer to accept a product both with and without a prepayment penalty provision. I have chosen to accept the product with a prepayment penalty.

While the statute makes it clear that the disclosure must be on an offer, out of an abundance of caution we have added the disclosure to our prepayment disclosure documents for Wisconsin.

The Loan Product Choice Disclosure will print for high-cost loans in Wisconsin on mortgages where 1161 Occupancy = 0 (Primary) when UseStateSpecificPrepayLanguage = Yes on Cx12387 Enhanced Prepayment Penalty Addendum, Cx12388 Enhanced Prepayment Penalty Rider and Cx12389 Enhanced Prepayment Penalty Disclosure.

These changes are on Stage 1 and Stage 2 servers and will be in effect on September 11, 2024. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

DR-155148

The preceding is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.