Final answer:
An early withdrawal charge on a settlement statement would show as a debit to the seller.
Step-by-step explanation:
The penalty charged by the creditor to the debtor for paying off the debt before it matures is called an early withdrawal charge. On the settlement statement, this charge would show as a debit to the seller.
For example, if a debtor pays off a loan earlier than the agreed-upon maturity date, the creditor may impose a fee as compensation for the loss of interest or other costs associated with the early repayment. This fee would be recorded as a debit on the settlement statement to reflect the reduction of the debtor's balance owed to the creditor.