Sec. 82.4. Negative amortization (deferral and capitalization)

During the term of the loan the loan-to-value ratio may increase above the initial loan-to-value ratio if the increase results from a change authorized under sections 82.3 and 82.2(b) of this Part, but the loan balance may not exceed 125 percent of the original appraised value of the property unless the loan contract provides that the payment shall be adjusted at least once every five years, beginning no later than the tenth year of the loan, to a level sufficient to amortize the loan at the then existing interest rate and loan balance over the remaining term of the loan.