Announcement 2025-033 SmartVest Prepayment Penalty Updates
Newrez LLC "Newrez" Approved Correspondent Clients; Newrez has updated the list of eligible and ineligible states that allow Prepayment Penalties for the SmartVest product.
SmartVest prepayment penalties are permitted with some states requiring restrictions. The following updates are being made to 7 state eligibility or policy language.
|
State |
Current Policy |
Updated Policy |
|
Nebraska |
1 unit properties ineligible – only permitted on 2-4 unit properties R&T transactions eligible if refinancing a Newrez loan |
1-2 Year prepayment penalty only |
|
Colorado Illinois Wisconsin |
Ineligible |
Eligible – Requires Prepayment Disclosures |
|
Texas |
Refinance Transactions Only |
No Restrictions |
|
Language Change Only – No Change to Policy |
||
|
State |
Current Policy Language |
Updated Policy Language |
|
Idaho Kentucky Nebraska |
R&T transactions ineligible if refinancing a Newrez loan (Newrez must be the original lender of the original note). Verify using the original Note/Mortgage or Title Report. |
Refinance transactions with the same mortgage company that funded the underlying mortgage as evidenced by the note are ineligible (example Newrez to Newrez transactions) |