The Floor of an ARM Is the Maximum Reduction of Payments

question 2

True/False

The floor of an ARM is the maximum reduction of payments or interest rates allowed.

---

Definitions:

Scenario Planning

Scenario planning is a strategic planning method used to make flexible long-term plans based on different possible future conditions.

Individuals

Refers to single human beings, considered separately from their collective memberships or identities.

Contingency Planning

The process of preparing for unexpected events or circumstances that could disrupt operations.

Trigger Points

Specific conditions or situations that prompt a particular action, response, or series of events.