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Home » Store » News » Virginia Seeks Overturn of Federal Bar on Prepay Laws

Virginia Seeks Overturn of Federal Bar on Prepay Laws

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The Commonwealth of Virginia plans to ask the U.S. Supreme Court to rule on a federal preemption that bars state restrictions on prepayment penalties on alternative mortgage loans. The state’s Bureau of Financial Institutions and the state attorney general are seeking to overturn an appeals court decision to uphold the Office of Thrift Supervision’s authority to override Virginia’s prepayment restrictions on loans made under the Alternative Mortgage Transactions Parity Act of 1982.
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