RI H8104

Adds an owner-occupancy requirement to Rhode Island's mortgage prepayment penalty rules, limiting protections to properties with 4 or fewer dwelling units that are owner-occupied.

Current law allows penalty-free mortgage prepayment after one year, with penalties capped at 2% of the balance during the first year for residential properties up to 4 units.

Nonpurchase money loans may include prepayment penalties beyond the standard limits if terms are disclosed in writing, the borrower consents, and no penalty is imposed after 60 months.

Lenders offering mortgage products with extended prepayment penalties must also offer a similar product that complies with standard penalty limitations.

Takes effect upon passage.