Cfpb mct 4 - Study guides, Class notes & Summaries

6. Which transaction meets the prepayment penalty coverage test and is therefore a high-cost mortgage? A. A $125,000 mortgage with a penalty of $1,500 flat fee if the loan is paid off before the 6 year maturity B. A $30.000 mortgage with a penalty of $500 flat fee is the loan is paid off within 3 years of closing C. A $250,000 mortgage with a penalty of $2,500 in waived closing costs ($500 third party fees and $2,000 origination fees) if the plan is terminated less than 3 years after accou...