Option ARM Loan definition

Option ARM Loan means an Adjustable Rate Loan which (i) provides the Mortgagor with multiple Monthly Payment options and (ii) may result in Negative Amortization, as set forth in the Underwriting Guidelines.
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Option ARM Loan means a mortgage loan where for a specified period of time the borrower or obligor thereunder is permitted to make no repayments of principal and payments of interest in amounts that are less than the interest payments that would otherwise be payable thereon based upon the stated rate of interest thereon.
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Option ARM Loan means a mortgage loan that requires a loan repayment in accordance with the terms and conditions of the adjustable rate mortgage note which includes a repayment rate that may not occur on the same calendar date as the interest rate change date and which repayment terms may also include an interest-only period.
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Examples of Option ARM Loan in a sentence

  • 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.

  • No Mortgage Loan (other than an Option ARM Loan) contains terms or provisions which would result in negative amortization.

  • No Option ARM Loan allows for Negative Amortization when combined with the original principal balance of the Option ARM Loan would result in a CLTV in excess of 115%.

  • Except for an Option ARM Loan, Interest-Only Loan, or HELOC, principal payments on the Loan commenced no more than sixty (60) days after funds were disbursed in connection with the Loan.

  • 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.

  • No Option ARM Loan or Negative Amortization Loan allows for Negative Amortization when combined with the original principal balance of the Option ARM Loan or Negative Amortization Loan, as applicable, would result in a CLTV in excess of 100%.

  • With respect to each Interest-Only Loan or Option ARM Loan, the interest-only period shall not exceed the period specified on the Loan Schedule and following the expiration of such interest-only period, the remaining Monthly Payments shall be sufficient to fully amortize the original principal balance over the remaining term of the Loan.

  • With respect to each Option ARM Loan, the related Note requires a Monthly Payment which is sufficient during the period following each Payment Adjustment Date, to fully amortize the outstanding principal balance as of the first day of such period (including any Negative Amortization) over the then remaining term of such Note and to pay interest at the related Mortgage Interest Rate and requires that such Option ARM Loan be fully amortized by the stated maturity date.

  • Except for an Interest-Only Loan or Option ARM Loan (each to the extent permitted under the Pricing Side Letter), principal payments on the Loan commenced no more than sixty (60) days after funds were disbursed in connection with the Loan.


More Definitions of Option ARM Loan

Option ARM Loan means a Mortgage Loan that is an adjustable rate product tied to either the 12-MTA Index (Monthly Treasury Averaged), the 11th District Cost of Funds Index (COFI), or another variable index approved for use in Mortgage Loans by CL and originated for sale to CL.
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Option ARM Loan or "Loan" means those residential mortgage loans that were the subject of the Complaint and which had terms providing for, among other things, a discounted initial interest rate, different monthly payment options in the early years of the loan (including, for example, a minimum payment option in an amount less than accrued interest on the loan), negative amortization in the event minimum payment does not cover accrued interest, and interest charges on any negative amortization.
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Option ARM Loan means a Mortgage Loan which (i) provides for the adjustment of the interest rate payable in respect thereof, (ii) provides the Mortgagor with multiple Monthly Payment options and (iii) may result in a portion of the interest accrued on such Mortgage Loan in any month which exceeds the related Monthly Payment for such month to be added to the principal balance thereof.
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Related to Option ARM Loan

  • ARM Loan A Mortgage Loan, if any, the Mortgage Interest Rate of which is subject to periodic adjustment in accordance with the terms of the related Mortgage Note.

  • LPMI Loan A Mortgage Loan with a LPMI Policy.

  • Maximum Lifetime Mortgage Rate The maximum level to which a Mortgage Interest Rate can adjust in accordance with its terms, regardless of changes in the applicable Index.

  • ARD Loan Any Mortgage Loan that provides that if the unamortized principal balance thereof is not repaid on its Anticipated Repayment Date, such Mortgage Loan will accrue Additional Interest at the rate specified in the related Mortgage Note and the Mortgagor is required to apply excess monthly cash flow generated by the related Mortgaged Property to the repayment of the outstanding principal balance on such Mortgage Loan.

  • Minimum Lifetime Mortgage Rate The minimum level to which a Mortgage Interest Rate can adjust in accordance with its terms, regardless of changes in the applicable Index.

  • Term SOFR Rate Loan means a Loan made hereunder with respect to which the interest rate is calculated by reference to Term SOFR (other than a Loan for which clause (c) of the definition of Base Rate is used to determine Base Rate).

  • Convertible Mortgage Loan Any individual Adjustable Rate Mortgage Loan purchased pursuant to this Agreement which contains a provision whereby the Mortgagor is permitted to convert the Adjustable Rate Mortgage Loan to a Fixed Rate Mortgage Loan in accordance with the terms of the related Mortgage Note.

  • Adjustable Rate Mortgage Loan A Mortgage Loan serviced pursuant to this Agreement under which the Mortgage Interest Rate is adjusted from time to time in accordance with the terms and provisions of the related Mortgage Note.

  • Jumbo Mortgage Loan is a collective reference to Jumbo Mortgage Loans (Standard Limit) and Jumbo Mortgage Loans (Specialty).

  • RFR Loan means a Loan that bears interest at a rate based on the Adjusted Daily Simple SOFR.

  • Fixed Rate Mortgage Loan A fixed rate mortgage loan purchased pursuant to this Agreement.

  • VA Loan means a Mortgage Loan which is subject of a VA Loan Guaranty Agreement as evidenced by a loan guaranty certificate, or a Mortgage Loan which is a vendor loan sold by the VA.

  • Maximum Mortgage Rate With respect to each Adjustable Rate Mortgage Loan, the percentage set forth in the related Mortgage Note as the maximum Mortgage Rate thereunder.

  • Refinancing Mortgage Loan Any Mortgage Loan originated in connection with the refinancing of an existing mortgage loan.

  • Non-MERS Eligible Mortgage Loan Any Mortgage Loan other than a MERS Eligible Mortgage Loan.

  • Refinanced Mortgage Loan A Mortgage Loan the proceeds of which were not used to purchase the related Mortgaged Property.

  • Minimum Mortgage Rate With respect to each Adjustable-Rate Mortgage Loan, the percentage set forth in the related Mortgage Note as the minimum Mortgage Rate thereunder.

  • Adjusted Mortgage Rate As to each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage Rate less the Master Servicing Fee Rate.

  • Draw Down Pricing Period means a period of twenty-two (22) consecutive Trading Days beginning on the date specified in the Draw Down Notice (as defined in Section 5.1(f) herein); provided, however, the Draw Down Pricing Period shall not begin before the day on which receipt of such notice is confirmed by the Purchaser.

  • Streamlined Mortgage Loan A Mortgage Loan originated in connection with the refinance of a mortgage loan pursuant to the related Seller’s streamlined documentation program then in effect.

  • Delay Delivery Mortgage Loans The Mortgage Loans for which all or a portion of a related Mortgage File is not delivered to the Trustee or to the Custodian on its behalf on the Closing Date. The number of Delay Delivery Mortgage Loans shall not exceed 25% of the aggregate number of Mortgage Loans as of the Closing Date.