Answer:
Answer by Richard Insley:
The same rules apply to ARMs allowing negative amortization as to those that do not permit it.
Answer:
Answer by Lucy Griffin:
ARMs are defined not by the payment amount but by the fact that the rate can change. The product you describe is definitely an ARM. You will need to adapt the ARM disclosures to illustrate the effect of rate changes on amortization.
First published on BankersOnline.com 8/11/03