AWACSMortgage compliance intelligence from Flightline

Carrington Correspondent · Investor Bulletin Updated Investment Property Prepayment Penalty Matrix (2026-09-11) · Published

Prepayment Penalty Matrix Updates for Kansas and Minnesota Investment Properties

Carrington Correspondent updated its prepayment penalty matrix for investment properties to allow up to five-year standard prepay terms in Kansas and Minnesota. The flexibility applies to non-QM investment loans upon closing with the required business affidavit.

Review recommendedAll checks passedRead the bulletin ↗ (opens in a new tab)

Loan impact

Summarized from the bulletin · verified

Applies to: Non-QM investment property mortgages secured by properties located in Kansas or Minnesota.

Applies when all of these are true
  • ANDCarrington loan
  • ANDOccupancy is investment
  • ANDProgram is Non-QM
  • ANDState is KS or MN
Addressed to
Carrington correspondent sellersFrom the publisher, not quoted from the text
Investor
CarringtonFrom the publisher, not quoted from the text
Programs
Non-QM
Occupancy
Investment property
Affected area
Products
Affected documents
Business Purpose Affidavit
Applicability confidence
Verified: every row taken from the source text is supported by it; rows marked "from the publisher" are not quoted

Summary by AWACS. Carrington Correspondent's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)

What changed

Summarized from the bulletin
RequirementPreviouslyNow
Prepayment penalty eligibility in Kansas and MinnesotaRelaxedNot statedInvestment properties in Kansas and Minnesota may be priced with standard prepayment penalty terms up to five years.

Each change applies when all the loan-impact conditions above are true.

What to do

AWACS interpretation · not source language

What to review: Review the new option permitting standard prepayment penalties up to five years on non-QM investment properties in Kansas and Minnesota subject to an executed business purpose disclosure affidavit.

QC implications

  • Sample non-QM investment property loans in Kansas and Minnesota with prepayment penalty terms up to five years to verify that an executed business purpose disclosure affidavit is present in the closing file.

Source and record

Version 2 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed

    Every quoted passage appears word for word in the official document.

  • Requirements backed by the source: Passed

    Anything marked required is backed by the requirement language and dates in the source.

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed

    The record follows the AWACS format and uses its standard labels.