To better serve our customers, we've created a DocMagic Prepayment Matrix that lists our verbiage for hard, soft and state-specific prepayment addenda and riders.  This matrix provides loan types and limitations for when particular verbiage appears.  Also, the DocMagic form names and citations are listed.

Here is the matrix: Prepayment Penalty Matrix.

Sample Multi-state Forms:

1. Multistate Prepayment Addendum - Hard

2. Multistate Prepayment Rider - Hard

3. Multistate Prepayment Addendum - Soft

4. Multistate Prepayment Rider - Soft

Please note these are our DocMagic defaults, but your INVESTOR SPECIFIC REQUIREMENTS MAY BE DIFFERENT. Please refer to investor guidelines for a particular investor's requirements.

Effective July 1, 2003, state housing creditors relying on OTS rules were no longer able to utilize AMTPA to preempt state limitations, restrictions or prohibitions of prepayment charges assessed in alternative mortgage transactions.  Effective July 22, 2011, amendments to AMPTA provide that state laws regarding loan features or charges that are not integral to alternative mortgage transactions, such as prepayment penalties, are no longer preempted by AMTPA for any state housing creditor.

• For a detailed, scholarly analysis of the history of prepayment penalties under the Parity Act, the OTS's rationale and justification for its treatment of prepayment penalties (including the role of predatory lending in that treatment), and an analysis of selected state-specific legislation applicable to predatory lending and alternative mortgage transactions, visit State-based Prepayment Penalty Requirements and the DocMagic Solution.

• For a detailed, practical explanation of DocMagic's response to this change in the law, including links to specific prepayment penalty provisions, visit OTS Says: Parity Act No Longer Preempts Prepayment Penalties.

If you have any questions regarding any of the information relating to prepayment penalties, please contact DocMagic's Compliance Department at (800) 649-1362.