Mr. Bartlett explains that without prepayment penalties, the marketplace would discipline 'steering' because lenders would not pay premiums (referred to as 'kickbacks' by consumer advocates) for placing borrowers in higher-rate loans if the borrower could easily refinance.

Authors

• Person: Not available Organization: U.S. House of Representatives, Committee on Banking and Financial Services
  Predatory Lending Practices - House.gov

Sources

• Predatory Lending Practices - House.gov commdocs.house.gov U.S. House of Representatives, Committee on Banking and Financial Services via serper

Referenced by nodes (3)

• prepayment penalties concept
• Bartlett entity
• Steering concept