--- title: How to generate the negative amortization cap exceeded report? description: This article discusses how to generate the Negative Amortization Cap Exceeded Report for ARM loans. --- [Skip to content](https://help.themortgageoffice.com/knowledge/how-to-create-the-negative-amortization-cap-exceeded-report#main-content) [![TMO-LO~1](https://help.themortgageoffice.com/hs-fs/hubfs/TMO-LO~1.png?width=200&height=65&name=TMO-LO~1.png)](https://www.themortgageoffice.com/) - [Platform](https://www.themortgageoffice.com/products/) Show submenu for Platform - [Loan Servicing](https://www.themortgageoffice.com/products/loan-servicing-software/) - [Loan Origination](https://www.themortgageoffice.com/products/loan-origination-software/) - [Fund Management](https://www.themortgageoffice.com/products/fund-management-software/) - [Knowledge Hub](https://www.themortgageoffice.com/knowledge-hub/) Show submenu for Knowledge Hub - [Blog](https://www.themortgageoffice.com/blog/) - [Resources](https://www.themortgageoffice.com/resources/) - [Webinars](https://www.themortgageoffice.com/resources/?_resource_types=on-demand-webinars) - [Seminars](https://www.themortgageoffice.com/seminars/) - [FAQs](https://www.themortgageoffice.com/frequently-asked-questions/) - [Release Notes](https://help.themortgageoffice.com/knowledge/release-notes) Open main navigation Close main navigation - [Platform](https://www.themortgageoffice.com/products/) Show submenu for Platform - [Loan Servicing](https://www.themortgageoffice.com/products/loan-servicing-software/) - [Loan Origination](https://www.themortgageoffice.com/products/loan-origination-software/) - [Fund Management](https://www.themortgageoffice.com/products/fund-management-software/) - [Knowledge Hub](https://www.themortgageoffice.com/knowledge-hub/) Show submenu for Knowledge Hub - [Blog](https://www.themortgageoffice.com/blog/) - [Resources](https://www.themortgageoffice.com/resources/) - [Webinars](https://www.themortgageoffice.com/resources/?_resource_types=on-demand-webinars) - [Seminars](https://www.themortgageoffice.com/seminars/) - [FAQs](https://www.themortgageoffice.com/frequently-asked-questions/) - [Release Notes](https://help.themortgageoffice.com/knowledge/release-notes) - [Contact Support](https://help.themortgageoffice.com/knowledge/kb-tickets/new) [Contact Support](https://help.themortgageoffice.com/knowledge/kb-tickets/new?hsLang=en) How can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://help.themortgageoffice.com/knowledge?hsLang=en) 2. [Loan Servicing](https://help.themortgageoffice.com/knowledge/loan-servicing?hsLang=en) 3. [Adjustable Rate Mortgages (ARM)](https://help.themortgageoffice.com/knowledge/loan-servicing?hsLang=en#adjustable-rate-mortgages-arm) October 9, 2026 # How to generate the negative amortization cap exceeded report? ## This article discusses how to generate the Negative Amortization Cap Exceeded Report for ARM loans. Adjustable rate mortgages that **include** a **payment cap** have the possibility of negative amortization. Negative amortization means that the loan balance increased because the periodic payment is not large enough to pay all the interest due on the loan. Because payment caps limit only the amount of payment **increases** and **not** interest rate increases, payments sometimes do not cover all the interest due on the loan. This usually means that the amount of interest shortage is automatically **added** to the loan **balance**, and interest may also be charged on that amount. The borrower may end up owing more later in the loan term than he did at the start. To **avoid** the possibility of the loan increasing past the equity available in the property, many adjustable rate mortgages include a **cap** on **negative amortization**. The cap typically limits the total amount to which the loan balance can increase to a percentage such as 125% or 110%. A negative amortization cap indicates that once this point is reached, monthly payments will be **recalculated** (recast) to fully repay the loan over the remaining term. During a recast, payment caps do not apply. NOTE: All ARM loans with current loan balances that have **exceeded** their negative amortization **limits** are included in the report. Loans with **zero** original balances or without negative amortization caps are **excluded** from the report. ### To generate the Negative Amortization Cap Exceeded Report: - Click on ![running](https://help.themortgageoffice.com/hs-fs/hubfs/TMO%20APP%20Icons/running.png?width=19&height=19&name=running.png) **Loan Servicing** in the left panel of The Mortgage Office®. - Click on **Tasks & Reports**. - Click ![print](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/print.png?width=15&height=15&name=print.png) **Negative Amortization Cap Exceeded Report** located underneath the **Adjustable Rate Mortgages** section. - Select **All Loans** or **Selected Loans by Account** from the drop-down list. TIP: When you choose Select Loans by Account you must enter starting and ending account numbers in the **From** and **To** input fields. You can enter the same starting and ending account number to select a **single** loan, or you can enter a logical range to select **multiple** loans. For example, if you enter HBT as the starting and ending accounts, all loans with account numbers starting with HBT will be included. - If necessary, use the **Select Categories to Include or Exclude** dialog to include or exclude loans based on their categories. NOTE: Categories are keywords or phrases that help you create logical loan groups. 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