A push for prepayment penalty legislation got a strong endorsement Sept. 28 when Bank of America, the nation's second largest bank holding company, threw its support behind a proposal to better protect mortgage lenders from losses associated with prepayments.

Although no legislation has been created, Claus Lund, senior vice president of Bank of America's secondary marketing/residential loan division, said that legislation would be introduced in Congress and would impose a penalty on homeowners looking to refinance their homes shortly after origination.

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