yield maintenance premium

yield maintenance premium

A prepayment penalty designed to replace lost income to investors if one of the loans in a collateralized mortgage backed security is paid off early, thereby effectively stopping any future interest income.

References in periodicals archive ?
The loan may be prepaid after year seven and before year eleven only upon payment of a yield maintenance premium and may be prepaid thereafter.
Words such as "expects," "believes," "anticipates," "intends," "will," "should" and variations of such words and similar expressions are intended to identify such forward-looking statements, which include statements concerning loan terms and interest rates, prepayment options and yield maintenance premiums, and anticipated future acquisitions and investments.