What is the penalty interest rate per annum for charging a borrower in excess of fees allowed under RMLA?

The penalty interest rate per annum for charging a borrower in excess of the fees allowed under the California Residential Mortgage Lending Act (RMLA) is set at 8%. This rate is established to protect borrowers from excessive charges that go beyond what is legally permitted, serving as a deterrent against predatory lending practices. By imposing this particular penalty rate, the regulatory framework aims to ensure fair lending practices and maintain accountability among lenders. Understanding this rate is crucial for mortgage professionals, as it underscores the significance of compliance with state regulations and emphasizes the need for transparent communication regarding fees and charges associated with lending.