Option ARM Loan definition

Option ARM Loan means a Loan that is an Adjustable Rate Mortgage Loan that (a) provides the Borrower with multiple Monthly Payment options and (b) may result in Negative Amortization, as set forth in the related Underwriting Guidelines.
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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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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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Examples of Option ARM Loan in a sentence

  • 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.

  • 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%.

  • 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.

  • The Class Action was brought on behalf of a class of borrowers who received an Option ARM Loan from Defendant from May 25, 2003 through December 23, 2013.

  • 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.

  • 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%.

  • No Loan provides for a final maturity of greater than 30 years from the date of origination; provided, however, that an Option ARM Loan or Conforming Loan that initially provides for amortization over a term of more than 30 years may provide for a final maturity of up to 40 years from the date of origination.

  • Defendant Nguyen had knowledge of and sanctioned the content and distribution of HMS’s marketing materials advertising Option ARM Loan products.

  • 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.


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.

  • Mortgage Rate Caps With respect to an Adjustable Rate Mortgage Loan, the Periodic Mortgage Rate Cap, the Maximum Mortgage Rate, and the Minimum Mortgage Rate for such Mortgage Loan.

  • Interest Rate Option means any LIBOR Rate Option or Base Rate Option.

  • 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.

  • Optional Prepayment Price shall have the meaning set forth in Section 14.02(a).

  • Converted Mortgage Loan An ARM Loan with respect to which the Borrower has complied with the applicable requirements of the related Mortgage Note to convert the related Mortgage Interest Rate to a fixed rate of interest, and the Servicer has processed such conversion. Co-op Shares: Shares issued by private non-profit housing corporations.

  • Periodic Mortgage Rate Cap With respect to an Adjustable Rate Mortgage Loan, the periodic limit on each Mortgage Rate adjustment as set forth in the related Mortgage Note.

  • Base Rate Term Loan means any portion of a Term Loan during any period in which such portion bears interest based on the Base Rate.

  • 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.

  • LIBOR Option has the meaning specified therefor in Section 2.12(a) of the Agreement.

  • 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 that bears interest based on the Term SOFR Rate.

  • Rate Option means the Eurodollar Rate or the Floating 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.

  • Discount Net Mortgage Rate As defined in the Series Supplement.

  • Jumbo Mortgage Loan Unless defined otherwise in the Transactions Terms Letter, a first lien Mortgage Loan (i) for which the original loan amount is greater than the applicable conventional conforming loan limits set by the Federal Housing Finance Authority in the jurisdiction where the related Mortgaged Property is located and (ii) which meets the transaction requirements set forth on Schedule 1 of the Transactions Terms Letter.

  • 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.

  • Eurodollar Term Loan means any Term Loan bearing interest at a rate determined by reference to the Adjusted LIBO Rate in accordance with the provisions of Article II.

  • 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.

  • LIBOR Rate Option means the option of the Borrower to have Loans bear interest at the rate and under the terms set forth in Section 4.1.1(a)(ii) [Revolving Credit LIBOR Rate Option].