prepayment

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prepayment

[-pā′mənt]
Etymology: L, prae + pacere, to pacify
the payment in advance for health care services by subscribers to a third-party insurance program.
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References in periodicals archive ?
The new HPM rules also include specific restrictions for prepayment penalties and repayment ability assessments based on the HOEPA rules and restrictions for escrow accounts and open-ended credit.
So prepayment penalties can be a valuable tool for borrowers who wish to pay lower monthly payments.
ACORN also demanded that Ocwen refund all prepayment penalties and other tees it has received from people living or working in the disaster area.
According to the requirements noted on Fannie Mae's Web site, Fannie Mae will only purchase loans that include prepayment penalties under the terms of a negotiated contract.
As mentioned earlier, we have received no specific complaints by consumers since the beginning of 1991 about the use of the Rule of 78s in prepayments and very few complaints about prepayment penalties of any sort.
Evidence indicates that the vast majority of mortgage fraud and predatory lending activities - including excessive fees, provision of credit life insurance and prepayment penalties - occurs in the conventional subprime lending market.
While the REITs that invest primarily in commercial mortgage-backed securities (CMBS) and direct commercial mortgages are less impacted by prepayments due to higher prepayment penalties on commercial mortgages, the investing public has tended to group all mortgage REITs together, according to Dubrowski.