PRIA Logo™
Rhode IslandS30732026 Regular SessionSenateWALLET

AN ACT RELATING TO PROPERTY -- MORTGAGES OF REAL PROPERTY .

Sponsored By: Robert Britto (Democratic)

Became Law

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Homeowners get limits on prepayment fees

If you have an owner-occupied Rhode Island home with up to four units, you pay no prepayment penalty for a full payoff after one year. In the first year, any prepayment charge is capped at 2% of the payoff balance. If interest or other charges were prepaid in your loan amount, the lender must rebate them under rules set by the Department of Business Regulation. These protections apply only to owner-occupied properties with four or fewer units.

Prepayment fees not treated as interest

The law says prepayment penalties under this section are not treated as interest under state law. This changes how those fees are handled legally. It does not change the separate caps and timelines on prepayment charges set in this law.

Limited penalties on some nonpurchase mortgages

For nonpurchase-money mortgages on owner-occupied homes with up to four units, a lender can charge a prepayment penalty only if it is clearly disclosed in writing and you agree. No penalty is allowed on any prepayment made more than 60 months after the loan date. Any lender that offers such a loan must also offer a similar mortgage that follows the standard rule: no penalty after one year and a 2% cap in the first year, and it must meet federal rules.

Sponsors & Cosponsors

Sponsor

  • Robert Britto

    Democratic • Senate

Cosponsors

  • Mark P. McKenney

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 169 • No: 0

House vote • 6/8/2026

MORTGAGES OF REAL PROPERTY PASSAGE AS AMENDED IN CONCURRENCE

Yes: 70 • No: 0

Senate vote • 5/7/2026

RELATING TO PROPERTY -- MORTGAGES OF REAL PROPERTY Approval of Amendment

Yes: 32 • No: 0

Senate vote • 5/7/2026

RELATING TO PROPERTY -- MORTGAGES OF REAL PROPERTY Approval of Amendment

Yes: 32 • No: 0

Senate vote • 5/7/2026

RELATING TO PROPERTY -- MORTGAGES OF REAL PROPERTY Passage as Amended

Yes: 35 • No: 0

Actions Timeline

  1. Effective without Governor's signature — Chapter 280

    6/26/2026Governor

  2. Transmitted to Governor

    6/18/2026Governor

  3. House passed as amended in concurrence

    6/8/2026House

  4. Placed on House Calendar (06/08/2026)

    6/5/2026House

  5. Committee recommends passage as amended in concurrence

    6/3/2026

  6. Scheduled for consideration (06/03/2026)

    5/29/2026

  7. Referred to House Judiciary

    5/8/2026House

  8. Senate passed as amended (floor amendment)

    5/7/2026Senate

  9. Placed on Senate Calendar (05/07/2026)

    4/29/2026Senate

  10. Committee recommends passage

    4/28/2026

  11. Scheduled for consideration (04/28/2026)

    4/24/2026

  12. Committee recommended measure be held for further study

    4/14/2026

  13. Scheduled for hearing and/or consideration (04/14/2026)

    4/10/2026

  14. Introduced, referred to Senate Commerce

    3/13/2026Senate

Bill Text

  • S3073 - As Amended

    3/13/2026

    HTMLPDF

  • S3073 - As Introduced

    3/13/2026

    HTMLPDF

Related Bills

Back to State Legislation