Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.

This bill makes it illegal for lenders to charge pre-payment penalties on mortgages for properties that are owned cooperatively, as long as more than half of the units are occupied by shareholders. This means that homeowners in these types of arrangements can pay off their mortgages early without facing extra fees. The goal is to provide more financial flexibility for cooperative homeowners.

Supporters of the bill argue that it empowers cooperative homeowners by eliminating unnecessary financial burdens when they want to pay off their mortgages early. They believe this will encourage homeownership and make housing more affordable for many families. By removing pre-payment penalties, the bill promotes financial freedom and stability for residents in cooperative housing.

Critics may argue that removing pre-payment penalties could lead to increased risk for lenders, potentially resulting in higher interest rates for all borrowers. They might also contend that this bill could disrupt the financial stability of cooperative housing by making it less appealing for lenders to provide mortgages. Additionally, some may see it as unnecessary regulation that could complicate the mortgage process.