closed-end mortgage

Closed-end mortgage

Mortgage against which no additional debt may be issued.

Closed-End Mortgage

1. In banking, a bond secured by a mortgage in which the mortgage may not be paid off before maturity, and the property in question may not be used as collateral on any other transaction without the bondholder's permission.

2. In real estate, a mortgage in which the principal amount may not be increased. Further borrowing is not permitted using the same mortgage as collateral.

closed-end mortgage

A mortgage with a prohibition against additional borrowing using the same lien. The prohibition against additional borrowing protects the existing creditors from having the security diluted. Compare open-end mortgage.

closed-end mortgage

A mortgage loan in which all sums have been funded at closing.Contrast with open-end mortgage, in which the principal balance may increase over time. A home loan is typically a closed-end mortgage;a construction loan is typically an open-end mortgage.

References in periodicals archive ?
In addition, under a new standardized reporting threshold, institutions that made less than 25 closed-end mortgage loans in each of the two preceding calendar years or fewer than 100 covered open-end lines of credit in each of the two preceding calendar years will be exempted from the rule.
It manages Second Angel Commercial Mortgage Fund l LLC, a $50 million closed-end mortgage fund that lends money to builders, developers, business and homeowners for short periods of time.
Home equity lending laws vary more widely from state to state than closed-end mortgage lending requirements so it was important for First Internet Bank of Indiana to be fully compliant in this area before offering HELOCs nationwide," said Terry King, group chairman of MRG.
TRID applies to nearly all closed-end mortgage loans regardless of a credit union's asset size or pricing of the mortgage.
The collateral of the above transaction consists of fixed- and adjustable-rate, closed-end mortgage loans secured by first or second liens on one- to four-family residential properties.
As of June 30, 2007, HSBC Finance serviced more than 392,000 subprime residential closed-end mortgage loans with an aggregate principal balance of more than $42 billion.
Second Angel Bancorp manages Second Angel Commercial Mortgage Fund l, LLC, a $50 million closed-end mortgage fund that lends money to builders, developers, business and homeowners for short periods of time.
SAB manages the Fund, a $50 million closed-end mortgage fund that lends money to builders, developers, business and homeowners for short periods of time.
31, 2005, HSBC Finance Corporation serviced over 315,000 subprime residential closed-end mortgage loans with an aggregate principal balance of over $33 billion.
The collateral of the above transactions consists of fixed- and adjustable-rate, closed-end mortgage loans secured by first or second liens on one- to four-family residential properties.
Fitch rates Household Mortgage Loan Trust's closed-end mortgage loan asset-backed notes, series 2003-HC2, as follows:
Household Mortgage Loan Trust, closed-end mortgage loan asset-backed notes, series 2003-HC1 $997.