closed-end mortgage

Closed-end mortgage

Mortgage against which no additional debt may be issued.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The two forms were typically given to consumers within three days after they applied for closed-end mortgage loans, and updated versions of one (and often both) of these forms were provided just prior to, or at the time of loan closing.
ATR mandates a repayment analysis for closed-end mortgage loans and prohibits certain loan terms and conditions.
Certain depository institutions originating fewer than 25 closed-end mortgage loans or fewer than 100 open-end lines of credit each year may no longer be subject to HMDA's reporting requirements at all.
To simplify the analysis, we focus on consumers who had exactly one closed-end mortgage with an outstanding balance of at least $50,000 as of the end of 2009 and stayed in the same census block over the course of 2010 (a proxy for not having changed residence; we simply want to omit from the analysis those who moved).
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.
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.
TRID applies to nearly all closed-end mortgage loans regardless of a credit union's asset size or pricing of the mortgage.
Other anecdotal evidence includes the fact that HFC and American General withdrew from the closed-end mortgage market because of insufficient profits.