Pledged Asset Mortgage

Concept of Pledged Asset Mortgage in the context of Real Property

A short definition of Pledged Asset Mortgage: A method of substituting a pledged asset, such as a CD, for a cash down payment. A buyer can then borrow one hundred percent of the purchase price. In the event of default the lender may convert the pledged asset to cash, which would reduce the loan to value ratio.

Concept of Pledged Asset Mortgage in the context of Real Property

A short definition of Pledged Asset Mortgage: A method of substituting a pledged asset, such as a CD, for a cash down payment. A buyer can then borrow one hundred percent of the purchase price. In the event of default the lender may convert the pledged asset to cash, which would reduce the loan to value ratio.