Question

The ability of homeowners to prepay the principal on their outstanding mortgage balance creates cash flow uncertainty for the lender. As a result, the lender may wish to prohibit prepayment on a mortgage loan for a specified period of time after its origination. This is accomplished through which of the following?
A. Defeasance
B. Yield Maintenance Provision
C. Demand Clause
D. Lockout Provision

Answer

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