Overview
The purpose of this bulletin is to announce the CMS State Prepayment Penalty Matrix - Investment Properties has been updated to reflect that investment property loans in Kansas and Minnesota can now be priced with a standard prepayment penalty up to five years as shown below.
| Prepayment Chart | ||||
|---|---|---|---|---|
| State | State Name | Prepay Eligibility | Specific Rules | Calculation Method |
| KS | Kansas | Yes | None | Standard Prepay |
| MN | Minnesota | Yes | None | Standard Prepay |
As a reminder, Carrington Mortgage Services, LLC (CMS) permits Prepayment Penalties on investment property loan transactions for the Carrington Non-QM products. A Business Purpose Affidavit disclosure must be executed at Closing.
“Standard Prepay” means a prepayment charge on six (6) months' advance interest on any amount prepaid in any 12-month period in excess of 20% of the unpaid balance.
Resources
Refer to the CMS State Prepayment Penalty Matrix - Investment Properties for detailed state specific requirements.
Contacts
Please contact CorrespondentRM@carringtonms.com with any questions.
Carrington thanks you for your business.
An Equal Housing Opportunity Lender. Copyright 2026. Carrington Mortgage Services, LLC headquartered at 500 North State College Boulevard, Suites 1030, 1300, and 1400, Orange, CA 92868. NMLS ID # 2600. Toll Free # 800-561-4567. All rights reserved. Restrictions may apply. All loans are subject to credit, underwriting and property approval guidelines. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: