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Finding Prepayment Terms

To research the terms of the prepayment provision that applies to a given mortgage loan and gather the relevant data, you need to consult several resources, which vary with the prepayment type and with the loan documents used to originate the mortgage loan. These resources may include the following:

  • Your organization’s servicing system
  • Mortgage loan documents
  • Borrower’s written notice of intent to prepay
  • Market data published in the online edition of The Wall Street Journal. 

Fannie Mae adopted a new loan document structure in 2011. The following table tells you where to find the relevant prepayment terms for mortgage loans originated before and after the implementation of the new loan documents. Non-Fannie Mae loan documents may vary.

Where to Find Prepayment Terms

Term Most Loan Documents Dated Earlier than June 1, 2011 Loan Documents Dated June 1, 2011 or Later
Prepayment Type Schedule A, attached to the Note Loan Agreement, Schedule 4
Note Date Multifamily Note Multifamily Note
Notification Criteria Multifamily Note, Section 10 Loan Agreement, Section 2.03
Prepayment End Date Multifamily Note, Section 10 and Schedule A Loan Agreement, Schedule 2
Declining Premium Percentage Schedule A, attached to the Note Loan Agreement, Schedule 4
Present Value Factor Schedule A, attached to the Note Loan Agreement, Schedule 4
The Wall Street Journal Yield Rate Schedule A, attached to the Note

Market data published in the online edition of The Wall Street Journal		 N/A (Loan documents dated June 1, 2011 or later do not use a Wall Street Journal Yield Rate to determine the Prepayment Premium.)
Constant Maturity (CMT) Yield Rate Schedule A, attached to the Note Loan Agreement, Schedule 4

© 2011 Fannie Mae. Trademarks of Fannie Mae.