Some lenders' rate sheets show that mortgage brokers can earn bigger YSPs, which are essentially commissions, by increasing consumers' interest rates, and the biggest increases are allowed only if a loan contains a prepayment penalty.
After an exhaustive analysis of the issue and all available data, the Board concluded that the costs and benefits of prepayment penalty provisions on higher-priced mortgages depend, to an important extent, on the structure of the loan. It has been common in the subprime market to structure loans to have a short expected life span.