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Bill

A 88

Relates to prohibiting pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership

2025 Regular Session Introduced by Robert Carroll and 1 co-sponsor

Bill A 88 prohibits pre-payment penalties on mortgages for cooperative properties, allowing homeowners to pay off loans early without extra fees, enhancing financial flexibility.

REFERRED TO JUDICIARY
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WeVote Research Nonpartisan
Bill Summary · A 88

Summary of Bill A 88

Bill Information

  • Bill Number: A 88
  • Title: Relates to prohibiting pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership
  • Status: Referred to Judiciary
  • Introduced: January 08, 2025
  • Classification: Bill

Purpose and Intent

Bill A 88 aims to protect homeowners who have mortgages secured by properties owned in a cooperative form of ownership. The primary intent of the bill is to prohibit lenders from imposing pre-payment penalties on these mortgages. This legislative measure seeks to enhance consumer protection and promote financial flexibility for homeowners.

Key Provisions

  • Prohibition of Pre-Payment Penalties: The bill specifically prohibits lenders from charging pre-payment penalties on mortgages secured by cooperative properties. This means that homeowners will not face additional fees if they choose to pay off their mortgage early.

  • Scope of Application: The legislation applies to all mortgages secured by real property that is owned cooperatively, which typically includes co-ops and similar housing arrangements.

Who Would Be Affected

  • Homeowners: Individuals who own or are purchasing homes in cooperative ownership structures will benefit from the elimination of pre-payment penalties, allowing them greater freedom to refinance or pay off their loans without incurring extra costs.

  • Lenders: Financial institutions and mortgage lenders will need to adjust their lending practices to comply with the new prohibition on pre-payment penalties.

Procedural Aspects

  • Current Status: As of January 08, 2025, the bill has been referred to the Judiciary Committee for further consideration. This is an important step in the legislative process, as the committee will review the bill and may make recommendations or amendments before it is brought to the floor for a vote.

Related Bills

Bill A 88 is related to several prior-session bills, which may provide context or background on similar legislative efforts:
- A 10727
- A 2667
- A 1877
- A 707
- S 1323 (companion bill in the Senate)

Conclusion

Bill A 88 represents a significant move towards enhancing consumer protections for homeowners in cooperative housing arrangements by eliminating pre-payment penalties on mortgages. If passed, this legislation could provide homeowners with greater financial flexibility and reduce the costs associated with early mortgage repayment. The bill is currently under review by the Judiciary Committee, and its progress will be closely monitored by stakeholders in the housing and financial sectors.

Compiled from official sources — confirm details with the bill’s official record.

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