Law Dictionary

To search for a particular term please use the following search box.

loaded couponing

the practice of a lender including the cost of mortgage insurance in the interest rate stated in the loan note, rather than listing it as a separate monthly charge. The practice permits a lender to cancel the mortgage insurance at a later date, while continuing to collect the monthly insurance premium from the homeowner/borrower. The practice was prohibited in 1985 by the Federal Home Loan Mortgage Corporation.

Source : U.S. Department of the Treasury

Language : English

Return

Return to Law Dictionary Index