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By taking advantage of this innovative new product, the borrower avoids the yield maintenance payment at the time of sale. Some prohibit prepayment for the first several years and then only with a yield maintenance penalty, others allow prepayment anytime. 31% of the pool is subject to yield maintenance until 2007, after which, for all the loans in the pool, only a prepayment premium will be assessed for payoffs prior to maturity. |
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