A special ruling from the Courtroom away from Is attractive out-of Maryland prohibits banking companies and you can lending establishments away from recapturing closing costs towards the “no-fee” mortgages which might be then prepaid service by the mortgagor. Loan providers exactly who provide this type of mortgages will have in order to “eat” the closing costs to the prepaid service mortgages, no matter whether the newest closing files include language to the contrary.
Provident also made use of letters provided of the Maryland’s Office away from Commissioner of Monetary Control, and therefore recognized the technique of charging settlement costs with the prepaid service fund
Inside Bednar v. Continue reading “24 months afterwards, Bednar refinanced his house and completely prepaid brand new Provident loan and closed out this new account”