Does the SAM function as a deferred, balloonstyle payment, and how should it be reflected in lender LOS systems?

Yes. The SAM functions as a deferred, balloonstyle lien. The full SAM amount, along with any shared appreciation owed, becomes due only when a repayment trigger occurs. In lender LOS systems, the SAM should be reflected as a deferred subordinate lien with a balloon payment due at the time of payoff, sale, or refinance in accordance with program requirements.