Fairway Ends Multiyear Prepayment Penalties

Fairway Independent Mortgage Co., a mortgage banker based in Sun Prairie, Wis., with more than 100 branches nationwide, has announced a new policy that prohibits any loan officer from charging a prepayment penalty longer than one year on any payment-option adjustable-rate mortgage product."This new policy demonstrates Fairway Independent’s commitment to the borrower in times when mortgage companies have been accused of putting their interests before those of customers," the company said. The policy will not affect the range of products available to its clients, Fairway said. The company noted that prepayment penalties typically enable originators to earn higher fees on a per-loan basis. "Generally speaking, the longer the prepayment penalty for the borrower, the higher the fee paid by the lender to the originating party," Fairway said, adding that such policies offer "absolutely no benefit to the customer." The company can be found online at http://www.fairwayindependentmc.com.