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How do we eliminate the risk of our customer prepaying a loan that has matched funding associated with it?

April 26, 2017associated customer Eliminate funding loan matched prepaying risk

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How do we eliminate the risk of our customer prepaying a loan that has matched funding associated with it?

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We recommend incorporating FHLBank prepayment language into your loan documents whenever possible. This allows you to pass any fee on to your customer making you indifferent to the prepayment of your advance. The language can be found on our Web site in the Member Products and Services Guide.