Examples of Negative Amortization Loan in a sentence
Dodd-Frank will significantly add to the HMDA data since it requires that the HMDA data also include Origination Channel, Applicant's Age, Applicant's Credit Score, Property Value, Loan Term, Term of any Introductory Interest Rate Period, Rate Spread, Total Points and Fees Payable at Origination, Term of any Prepayment Penalty, Negative Amortization, Loan Originator Unique Identifier, Universal Loan Identifier, and Parcel Loan Number (as the CFPB may determine appropriate).
With respect to each Adjustable Rate Mortgage Loan which is not a Negative Amortization Loan, the Mortgage Note is payable on the first day of each month in Monthly Payments, which, are changed on each Adjustment Date, and are sufficient to fully amortize the original principal balance over the original term thereof and to pay interest at the related Mortgage Interest Rate.
A Negative Amortization Loan (also called an Option Arm loan) is a loan that lets you pay some or all of the interest you owe each month.
With respect to each Negative Amortization Loan or Option ARM Loan which provides for Negative Amortization, the consolidated principal amount does not exceed the original principal amount of the Loan plus any Negative Amortization in a combined amount not to exceed the maximum Negative Amortization permitted under the terms of the Note.
Except for an Option ARM Loan (to the extent permitted under the Pricing Side Letter), no Loan is a Negative Amortization Loan.