Examples of Option ARM in a sentence
Negative Amortization Numeric – Integer 12 999 Negatively Amortizing ARMs Only >= 0 to <=120 62 Option ARM Indicator An indicator of whether the loan is an Option ARM.
Option ARM Numeric – Decimal 879.52 99 Option ARMs Only >=0 65 Current Minimum Payment Current Minimum Payment (in dollars).
Option ARM Numeric – Integer 2 99 Option ARMs Only N/A 1= Fully amortizing 30 year 2= Fully amortizing 15 year 3=Fully amortizing 40 year 4 = Interest-Only 5 = Minimum Payment 99= Unknown 64 Initial Minimum Payment The initial minimum payment the borrower is permitted to make.
These payments were equivalent to approximately 62% of the original principal balance of the Option ARM loans.
With respect to unliquidated Option ARM loans that UBS has agreed to repurchase, UBS expects severity rates will be similar to payments made for liquidated loans.
Payments made by UBS to date to resolve repurchase demands have been for liquidated adjustable rate mortgages that provide the borrower with a choice of monthly payment options (Option ARM loans).
Austin Kilgore, “Subprime Problems Persist, as Alt-A, Option ARM Crisis Brews,” HousingWire, January 11, 2010, https://www.housingwire.com/articles/6208-subprime-problems-persist-alt-option-arm-crisis-brews.
This is where the unique features of the Option ARM come into play.
No Mortgage Loan (other than an Option ARM Loan) contains terms or provisions which would result in negative amortization.
Principal payments on the Mortgage Loan (except with respect to an Option ARM Loan) commenced no more than sixty (60) days after funds were disbursed in connection with the Mortgage Loan.