Correspondent Blog
Tag: Prepay Provisions
01/18/23
Why Prepayment Penalties Matter in 2023
Prepayment penalties on loans always drive value. However, in 2023, loan prepayment provisions will be essential tools for commercial banks. Loan prepayment provisions lower prepayment speeds (especially in a stable or declining interest rate environment) and drive higher return on assets (ROA) for banks. In this article, while we have discussed how to sell prepayment…