Final answer:
Hypothecation is the practice of pledging an asset as collateral for a loan while retaining possession of the asset, commonly used in mortgage agreements.
Step-by-step explanation:
When Chaz has pledged his home as security for a mortgage without giving up possession, this is known as hypothecation. In this case, Chaz retains possession of the property but grants the lender a security interest in the property as collateral for the loan.
This is a common practice in mortgage agreements where the borrower is allowed to maintain use and occupancy of their home while ensuring that the lender has a secured interest.