Correspondent Blog
Tag: Prepayment Protection
01/23/23
4 Ways To Quantify Loan Prepayment Protection in 2023
In a previous article (here), we discussed why commercial loan prepayment protection would be a critical return on asset (ROA) driver for community banks in 2023. We outlined the four main reasons why prepayment provisions increase profitability for banks. We also discussed the four standard prepayment provisions for commercial loans (step-down, lock-out, defeasance, and symmetrical…