The ability of homeowners to prepay the principal on their outstanding mortgage balance creates cash flow uncertainty for the lender. Which statementbest describes prepayment restrictions on first mortgage home loans?
a. yield maintenance provisions are common demand
b. clauses are common
c. prepayment fees are common
d. prepayment restrictions are prohibited in most cases
a. yield maintenance provisions are common demand
b. clauses are common
c. prepayment fees are common
d. prepayment restrictions are prohibited in most cases