I dont' charge high interest rates, about 8% right now, which is a bargain considering I don't charge points.I do charge stiff late charges, the right to "re-set" the interest rate for multiple lates, and a 6 months interest penalty for prepayment in the first 2 to 4 years.

Mortgage fraud conspirators who contributed to the real estate crisis of 2008 are still standing in line for punishment. Six real estate and mortgage professionals in New York are facing charges that could put them aw...

Your buddy's example is sales tax fraud, and the penalties are quite stiff.

The rate and prepayment penalty are both quite stiff. 

I agree with @Cameron Tope that there are some hungry investors out there and it makes for some stiff competition (and higher prices). 

Pretty stiff penalties for having an undisclosed side deal.

Bummer for us working stiffs!

Can they stiff you?

The dishwasher won't come out without busting up the tile in front of the dishwasher cavity.This is one of many reasons to dislike the kind of fools who put hardwood floors in kitchens.If the hardwood's nail-in random-length, you can bring the pieces in front of the cavity out slowly with stiff scrapers and pry bars, and then nail them back in, face nailing the last few rows. 

I feel like this is giving them all the leverage, so if things go south I wont fire them due to stiff financial penalties.