Refinance: Is it legal for the previous mortgage broker to charge penalty to reimburse the original lender?
alec b asked:
…even if the original loan had no prepayment penalty?
…even if the original loan had no prepayment penalty?
Please refer to the following form. Is it even legal in CA?
In the event I / we refinance the loan through anyone, other than “XXX Lender”, within twelve (12) months of the funding date, I / we agree to reimburse “XXX lender” for any, and all, penalties against it by the original Lender, or anyone to whom the loan may have been assigned.
“BY SIGNING BELOW, I / WE HAVE READ, UNDERSTAND, AND CONSENT TO SUCH REIMBURSEMENT SHOULD THE EVENTS DESCRIBED ABOVE OCCUR.”
MARQUIS
