Prepayment Penalties

a. have a maturity of 15 years or more where the borrower is prepaying voluntarily;
b. the prepayment amount exceeds 25 percent of the outstanding balance of the loan; AND
c. the prepayment is made within the first 3 years after the date of the first disbursement (not approval) of the loan proceeds.

The prepayment fee calculation is as follows:

a. during the first year after disbursement, 5 percent of the amount of the prepayment;
b. during the second year after disbursement, 3 percent of the amount of the prepayment; or
c. during the third year after disbursement, 1 percent of the amount of the prepayment.