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Home » Store » News » A Big Hit in Subprime Market, Prepayment Penalties Fall Flat in Jumbo MBS Market

A Big Hit in Subprime Market, Prepayment Penalties Fall Flat in Jumbo MBS Market

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While it showed signs of life as recently as two years ago, the market for securities backed by jumbo mortgages with prepayment penalties appears to have fizzled. On the other hand, issuers of mortgages backed by subprime mortgages are increasingly turning to prepayment penalties to protect their collateral and lure investors.
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