As reminder, Carrington Mortgage Services, LLC (CMS) permits prepayment penalties on Investor Advantage, Carrington Flexible Advantagesm and Carrington Flexible Advantage Plus non-owner-occupied, investment property loan transactions when permissible by State law. Effective Thursday January 24, 2019, CMS will add Illinois and Virginia as permissible states to charge prepayment penalties.
Pricing Prepayment Penalty Options
The prepayment term may be three years, two years, one year or no prepay.
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.
CMS prohibits Prepayment Penalties in Alaska, Delaware, North Carolina, New Jersey, Vermont, West Virginia and Wisconsin.
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 CorrespondentRM@carringtonms.com with any questions.
Carrington thanks you for your business.