Negative Amortization Loan definition

Negative Amortization Loan means each Loan that may be subject to Negative Amortization.

Negative Amortization Loan. Each Loan that is identified on the Loan Schedule as a Loan that may be subject to Negative Amortization.

Negative Amortization Loan means any Senior Loan with a feature permitting one or more amounts owing to be capitalized, or which otherwise permits negative amortization of the principal balance, including without limitation, option ARM mortgage loans and reverse mortgage loans.

Examples of Negative Amortization Loan in a sentence

• 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.

• 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%.

More Definitions of Negative Amortization Loan

Negative Amortization Loan. Each Mortgage Loan which contains a provision for negative amortization, as indicated on the Mortgage Loan Schedule.

Negative Amortization Loan. Each Mortgage Loan which allows for the capitalization of interest payments thereon as described in the related Mortgage Note.

Negative Amortization Loan means a mortgage loan where for a specified period of time the related borrower or obligor 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.

Negative Amortization Loan means a Mortgage Loan whose principal balance will increase over time due to the addition of unpaid interest amounts to the outstanding principal balance of the mortgage loan.

Negative Amortization Loan. With respect to each Negative Amortization Loan, the related Mortgage Note: (i) requires a Monthly Payment which is sufficient to fully amortize the outstanding principal balance in accordance with the terms of the related Mortgage Note and (ii) the Monthly Payment shall adjust in accordance with the terms of the related Mortgage Note;

Negative Amortization Loan means each “Alt-A” credit Loan that is identified on the Loan Data Transmission as a Loan that may be subject to Negative Amortization.

Negative Amortization Loan. Any Mortgage Loan which provides for Deferred Interest.