Common use of Negative Amortization Mortgage Loans Clause in Contracts

Negative Amortization Mortgage Loans. Each negative amortization Mortgage Loan is payable each month in monthly installments in accordance with the terms of the related Mortgage Note, as indicated on the related Mortgage Loan Schedule. With respect to each negative amortization Mortgage Loan, during the term of the Mortgage Loan, the unpaid principal balance of the Mortgage Loan shall not exceed 110% of the initial approved principal balance of the Mortgage Loan; provided that with respect to up to 10% of the Mortgage Loans, the unpaid principal balance of the Mortgage Loan shall not exceed 115% of the initial unpaid principal balance of the Mortgage Loan;