Announcement 19-0006: Carrington Advantage Program Prepayment Fees for Investment Properties

January 18, 2019


Effective immediately, Carrington Mortgage Services, LLC (CMS) will permit prepayment penalties to be charged on Investor Advantage, Carrington Flexible Advantage and Carrington Flexible Advantage Plus non-owner-occupied, investment property loan transactions. Prepayment penalties may only be charged when permissible by State law. The prepayment term may be three years, two years, one year or no prepay.

Pricing Prepayment Penalty Options

The Base Price is improved to reflect the three-year Prepayment Penalty.
Borrowers can opt for a two-year, one-year, or Buy Out the Prepayment Penalty by adjusting the price as shown on the Rate Sheet.

State Restrictions

CMS prohibits Prepayment Penalties in Alaska, Delaware, Illinois, North Carolina, New Jersey, Vermont, Virginia, West Virginia and Wisconsin.

Disclosure Requirements

Correspondent is responsible for the following disclosure requirements for loans with a prepayment penalty:

  • A Business Purpose Affidavit must be executed at Closing.
  • Prepayment Penalty Disclosures required by Federal and State Guidelines


Please contact with any questions.

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Contact your Account Executive with questions.

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Carrington Mortgage Services LLC
P.O. Box 692408
San Antonio, TX 78269-2408

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This information is provided for your convenience and Carrington Mortgage Services, LLC makes no warranties concerning the accuracy or completeness of any of the information. This is not financial or legal advice and should not be taken as such. This information is for mortgage professionals only and is not intended for distribution to consumers.
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