The hearing on HB 2497 was opened by Chairperson Dietrich. Revisor Eileen Ma gave a summary of the bill. (Attachment 7)

Michael Stidham of Rocket Mortgage spoke in favor of the bill. (Attachment 8) He explained that the bill allows for prepayment penalties on business-purpose real estate loans after six months in exchange for lower upfront pricing, lower interest rates, or reduced origination fees. This type of loan concerns investment properties, those who intend to hold a property for longer than six months, and curbs "house flipping" which artificially inflates housing prices. He stated that 35 other states already allow for prepayment penalties on these type of loans.

Mr. Stidham stood for questions from the committee. 

Chairperson Dietrich closed the hearing on HB 2497.

Meeting adjourned at 10:21 a.m. Next meeting is scheduled for March 5, 2026.