{"component": "clause", "props": {"groups": [{"samples": [{"hash": "kfi9nTrMsrq", "uri": "/contracts/kfi9nTrMsrq#negative-amortization", "label": "Note and Security Agreement", "score": 18.0, "published": true}, {"hash": "gp5Zk4BV3XK", "uri": "/contracts/gp5Zk4BV3XK#negative-amortization", "label": "Note and Security Agreement", "score": 18.0, "published": true}], "snippet": "If at any time your scheduled payments are not sufficient to pay the loan by the due date, your payments may be increased by the amount necessary for your loan to be paid off in the same number of months as originally scheduled.", "size": 2, "snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [3, 14]}, {"key": "scheduled-payments", "type": "clause", "offset": [20, 38]}, {"key": "to-pay", "type": "clause", "offset": [58, 64]}, {"key": "the-loan", "type": "clause", "offset": [65, 73]}, {"key": "due-date", "type": "definition", "offset": [81, 89]}, {"key": "payments-may-be", "type": "clause", "offset": [96, 111]}, {"key": "increased-by", "type": "clause", "offset": [112, 124]}, {"key": "necessary-for", "type": "definition", "offset": [136, 149]}, {"key": "your-loan", "type": "definition", "offset": [150, 159]}, {"key": "number-of-months", "type": "definition", "offset": [187, 203]}], "hash": "90a9085d0a28cd2abdced63b57bdbde6", "id": 9}, {"samples": [{"hash": "ceal6yx40K3", "uri": "/contracts/ceal6yx40K3#negative-amortization", "label": "Indenture (CBRE Realty Finance Inc)", "score": 21.0, "published": true}, {"hash": "6HTxzV8vyI0", "uri": "/contracts/6HTxzV8vyI0#negative-amortization", "label": "Seller Transfer Agreement (CBRE Realty Finance Inc)", "score": 21.0, "published": true}], "snippet": "The Mezzanine Loan Interest does not have a negative amortization or deferred interest feature.", "size": 2, "snippet_links": [{"key": "loan-interest", "type": "clause", "offset": [14, 27]}, {"key": "deferred-interest", "type": "clause", "offset": [69, 86]}], "hash": "788198d5744f6ded1df2c91d95067fc8", "id": 8}, {"samples": [{"hash": "SoacWadxeE", "uri": "/contracts/SoacWadxeE#negative-amortization", "label": "Master Repurchase Agreement (Radian Group Inc)", "score": 35.0862426758, "published": true}, {"hash": "j7lMDAJHQ5m", "uri": "/contracts/j7lMDAJHQ5m#negative-amortization", "label": "Master Repurchase Agreement (Rocket Companies, Inc.)", "score": 32.6139640808, "published": true}, {"hash": "iZK8jGOETvQ", "uri": "/contracts/iZK8jGOETvQ#negative-amortization", "label": "Master Repurchase Agreement (Caliber Home Loans, Inc.)", "score": 31.7652301788, "published": true}], "snippet": "None of the Mortgage Notes relating to any of the Mortgage Loans provides for negative amortization.", "size": 12, "snippet_links": [{"key": "mortgage-notes", "type": "clause", "offset": [12, 26]}, {"key": "relating-to", "type": "definition", "offset": [27, 38]}, {"key": "of-the-mortgage-loans", "type": "clause", "offset": [43, 64]}], "hash": "14531fe3249069aa283efcd72b4dfde1", "id": 3}, {"samples": [{"hash": "qEJfLhMZAB", "uri": "/contracts/qEJfLhMZAB#negative-amortization", "label": "Servicing Agreement (Wells Fargo Mortgage Backed Securities 2006-Ar5 Trust)", "score": 18.0, "published": true}, {"hash": "lwHO5wKHrC1", "uri": "/contracts/lwHO5wKHrC1#negative-amortization", "label": "Servicing Agreement (Wells Fargo Mortgage Backed Securities 2007-3 Trust)", "score": 18.0, "published": true}, {"hash": "l7x7zDTlN86", "uri": "/contracts/l7x7zDTlN86#negative-amortization", "label": "Servicing Agreement (Wells Fargo Asset Securities Corp)", "score": 18.0, "published": true}], "snippet": "To the extent any Mortgage Loan provides for negative amortization, such as a GPM or GPARM Loan, the Servicer must assure that the Unpaid Principal Balance of such Mortgage Loan never exceeds the related Maximum Negative Amortization Amount, and that the related Monthly Payment is recast as provided for in the Mortgage Note such that the balance fully amortizes within the remaining term of such Mortgage Loan.", "size": 76, "snippet_links": [{"key": "to-the-extent", "type": "clause", "offset": [0, 13]}, {"key": "the-servicer", "type": "clause", "offset": [97, 109]}, {"key": "unpaid-principal-balance", "type": "definition", "offset": [131, 155]}, {"key": "such-mortgage-loan", "type": "definition", "offset": [159, 177]}, {"key": "maximum-negative-amortization-amount", "type": "definition", "offset": [204, 240]}, {"key": "monthly-payment", "type": "definition", "offset": [263, 278]}, {"key": "the-mortgage-note", "type": "definition", "offset": [308, 325]}, {"key": "the-balance", "type": "clause", "offset": [336, 347]}, {"key": "term-of", "type": "clause", "offset": [385, 392]}], "hash": "b0c5c97ff3e0eea0bd440702950d4e10", "id": 1}, {"samples": [{"hash": "lXqvm6GQsmN", "uri": "/contracts/lXqvm6GQsmN#negative-amortization", "label": "Mortgage Loan Flow Purchase, Sale & Servicing Agreement (Citigroup Mortgage Loan Trust 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"/contracts/knrfjiOBWXo#negative-amortization", "label": "Mortgage Loan Purchase and Warranties Agreement (Morgan Stanley Mortgage Loan Trust 2007-7ax)", "score": 21.0, "published": true}, {"hash": "aousJnrBq8b", "uri": "/contracts/aousJnrBq8b#negative-amortization", "label": "Mortgage Loan Purchase and Warranties Agreement (Morgan Stanley Mortgage Loan Trust 2007-5ax)", "score": 21.0, "published": true}, {"hash": "4Nxz0XxWyQ3", "uri": "/contracts/4Nxz0XxWyQ3#negative-amortization", "label": "Mortgage Loan Purchase and Warranties Agreement (Morgan Stanley Mortgage Loan Trust 2007-8xs)", "score": 21.0, "published": true}], "snippet": "No Mortgage Loan is subject to negative amortization; (ggg) Origination Practices/No Steering. The Mortgagor was not encouraged or required to select a mortgage loan product offered by the Mortgage Loan\u2019s originator which is a higher cost product designed for less creditworthy borrowers, unless at the time of the Mortgage Loan\u2019s origination, such Mortgagor did not qualify taking into account such facts as, without limitation, the Mortgage Loan\u2019s requirements and the Mortgagor\u2019s credit history, income, assets and liabilities and debt-to-income ratios for a lower-cost credit product then offered by the Mortgage Loan\u2019s originator or any affiliate of the Mortgage Loan\u2019s originator. If, at the time of loan application, the Mortgagor may have qualified for a lower-cost credit product then offered by any mortgage lending affiliate of the Mortgage Loan\u2019s originator, the Mortgage Loan\u2019s originator referred the Mortgagor\u2019s application to such affiliate for underwriting consideration. For a Mortgagor who seeks financing through a Mortgage Loan originator\u2019s higher-priced subprime lending channel, the Mortgagor was directed towards or offered the Mortgage Loan originator\u2019s standard mortgage line if the Mortgagor was able to qualify for one of the standard products. This representation and warranty is a Deemed Material and Adverse Representation;", "size": 6, "snippet_links": [{"key": "mortgage-loan-is", "type": "definition", "offset": [3, 19]}, {"key": "subject-to", "type": "definition", "offset": [20, 30]}, {"key": "origination-practices", "type": "clause", "offset": [60, 81]}, {"key": "no-steering", "type": "clause", "offset": [82, 93]}, {"key": "the-mortgagor", "type": "clause", "offset": [95, 108]}, {"key": "loan-product", "type": "definition", "offset": [161, 173]}, {"key": "offered-by", "type": "definition", "offset": [174, 184]}, {"key": "the-mortgage-loan", "type": "clause", "offset": [185, 202]}, {"key": "designed-for", "type": "definition", "offset": [247, 259]}, {"key": "time-of-the", "type": "clause", "offset": [303, 314]}, {"key": "without-limitation", "type": "clause", "offset": [410, 428]}, {"key": "credit-history", "type": "definition", "offset": [483, 497]}, {"key": "assets-and-liabilities", "type": "clause", "offset": [507, 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"83b29a01a121e3ef5dddf780f35f9142", "id": 6}, {"samples": [{"hash": "6jWyH97hges", "uri": "/contracts/6jWyH97hges#negative-amortization", "label": "Heloc Flow Purchase and Servicing Agreement (PennyMac Financial Services, Inc.)", "score": 30.3415470123, "published": true}, {"hash": "hI2b9X8eZDP", "uri": "/contracts/hI2b9X8eZDP#negative-amortization", "label": "Heloc Flow Purchase and Servicing Agreement (PennyMac Mortgage Investment Trust)", "score": 30.3333339691, "published": true}], "snippet": "No Credit Agreement relating to a HELOC provides for negative amortization.", "size": 2, "snippet_links": [{"key": "credit-agreement", "type": "definition", "offset": [3, 19]}, {"key": "relating-to", "type": "definition", "offset": [20, 31]}], "hash": "ec431213e5cb3b58471c184fb570c00d", "id": 7}, {"samples": [{"hash": "iLdzF1t75N9", "uri": "/contracts/iLdzF1t75N9#negative-amortization", "label": "Master Mortgage Loan Purchase and Servicing Agreement (Jpmac 2006-Cw1)", "score": 19.0, "published": true}], "snippet": "With respect to each Mortgage Loan which is a Second Lien, the related first lien does not permit negative amortization. (ggg)", "size": 2, "snippet_links": [{"key": "with-respect-to", "type": "clause", "offset": [0, 15]}, {"key": "each-mortgage-loan", "type": "definition", "offset": [16, 34]}, {"key": "second-lien", "type": "definition", "offset": [46, 57]}, {"key": "first-lien", "type": "clause", "offset": [71, 81]}, {"key": "does-not-permit", "type": "clause", "offset": [82, 97]}], "hash": "c8f0a653e7d8662b5050f1533886936c", "id": 10}], "next_curs": "Cl4SWGoVc35sYXdpbnNpZGVyY29udHJhY3RzcjoLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih5uZWdhdGl2ZS1hbW9ydGl6YXRpb24jMDAwMDAwMGEMogECZW4YACAA", "clause": {"parents": [["accounting-procedures", "Accounting Procedures"], ["miscellaneous-provisions", "Miscellaneous Provisions"], ["mortgage-loan-accounting", "Mortgage Loan Accounting"], ["amendments", "Amendments"], ["representations-and-warranties-as-to-individual-mortgage-loans", "Representations and Warranties as to Individual Mortgage Loans"]], "children": [["principal-residence", "Principal Residence"], ["right-to-cure-first-lien", "Right to Cure First Lien"], ["request-for-notice-no-consent-required", "Request for Notice; No Consent Required"], ["no-default-under-first-lien", "No Default Under First Lien"], ["no-negative-amortization-of-related-first-lien-loan", "No Negative Amortization of Related First Lien Loan"]], "title": "Negative Amortization", "size": 168, "id": "negative-amortization", "related": [["rapid-amortization-events", "Rapid Amortization Events", "Rapid Amortization Events"], ["expected-amortization-schedule-for-principal", "Expected Amortization Schedule for Principal", "Expected Amortization Schedule for Principal"], ["early-amortization-events", "Early Amortization Events", "Early Amortization Events"], ["allocations-during-the-early-amortization-period", "Allocations During the Early Amortization Period", "Allocations During the Early Amortization Period"], ["scheduled-payments", "Scheduled Payments", "Scheduled Payments"]], "related_snippets": [], "updated": "2025-09-05T04:24:44+00:00", "also_ask": ["What borrower protections should be included to mitigate negative amortization risks?", "How can negative amortization clauses be negotiated to balance lender and borrower interests?", "What are the most common legal challenges to enforcing negative amortization provisions in court?", "How do negative amortization terms compare across jurisdictions or standard industry contracts?", "What disclosure requirements are essential to avoid claims of unfair or deceptive practices?"], "drafting_tip": "Define negative amortization explicitly to prevent misinterpretation; specify calculation methods to ensure transparency; require borrower acknowledgment to confirm understanding of payment obligations.", "explanation": "The Negative Amortization clause defines how unpaid interest on a loan is added to the principal balance, rather than being paid off as it accrues. In practice, this means that if a borrower makes payments that are less than the interest due, the unpaid portion is capitalized, increasing the total amount owed over time. This clause is important because it clarifies the lender\u2019s right to add unpaid interest to the loan balance, ensuring both parties understand how the debt can grow and helping to prevent disputes over payment calculations."}, "json": true, "cursor": ""}}