The Netherlands Authority for the Financial Markets (AFM) has created and published guidelines that mortgage lenders must follow when calculating early repayment charges, according to a press release on the ABN AMRO website.
The goal of the guidelines is to help interpret language in new mortgage regulations that went into place last July.
Some banks charge a fee when a client repays some or all of a mortgage loan ahead of schedule. Until now, ABN AMRO's early repayment terms were spelled out in the contract between the bank and the borrower.
The new AFM interpretation may impact those who paid fees for early repayment on ABN AMRO mortgage loans through March 20 of this year. If the fees paid were too high, the bank will refund them. If the charge was too low, the old calculation stays in place, the bank said in its release. No action is required by borrowers.
ABN AMRO will pay out approximately 5 million euros to the clients who paid fees between last July 14 and March 20.
From here forward, fees charged to clients will meet the guidelines issued by the AFM. ABN AMRO said it is working to ensure no difficulties with any loans for its customers.
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