Specifically, a penalty would be prohibited where the borrower's debt-to-income ratio exceeds 50 percent, and a penalty would have to expire before a loan's payment could increase. The rule would also ban prepayment penalties where they are more likely to be part of a "loan flipping" scheme--specifically, where a lender or its affiliate refinances the lender's own loan.
One could say that the signing of the Memorandum on this particular day is just a coincidence, but I say that this is a blessing and a destiny that we are shaping for ourselves. BIS central bankers’ speeches  1  Thank you for your attention. I now give the floor to Professor Boričić. 2  BIS central bankers’ speeches