Correspondent Blog
Tag: Prepayment Structure
01/27/26
Which Prepayment Structure Do You Use?
In recent articles (HERE) we discussed the importance of commercial loan prepayment speeds. We explained why loan prepayment speed is a major factor influencing a bank’s profitability, and how national banks use historical analysis, quantitative modeling, and predictive analytics to structure loans to increase loan retention (decrease loan prepayments). We also outlined how various input…