Lender Pause on Refinance Loan Products - Prepayment Penalty Still in Effect?

[Ian M Crawley]

Hello,

We want to cash-out refi a 6-unit building that has a 2% prepayment penalty if refinanced outside of original lender. They informed me they have looked through their portfolio and currently are on pause for investment properties.

They informed me the 2% prepayment penalty is still in effect. Anyone have experience with this scenario before? IMO, it seems logical that the clause would become void if the original lender issued a freeze of the loan product they require you to use to avoid penalty.

Thank you!