What is the National maximum Prepayment Penalty that the OTS will allow a federally chartered lender charge?
I have heard 5.00% but I have a lender trying to charge my client 7.875%

Thanks

There is no specified limitations on prepayment penalties, it is a matter of contract:

Subpart A_Lending and Investment Powers for Federal Savings Associations

Sec. 560.34 Prepayments.

Any prepayment on a real estate loan must be applied directly to reduce the principal balance on the loan unless the loan contract or the borrower specifies otherwise. Subject to the terms of the loan contract, a Federal savings association may impose a fee for any prepayment of a loan.