Texas Finance Code 159.001 – Definitions
Terms Used In Texas Finance Code 159.001
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
In this chapter:
(1) “Commissioner” means the savings and mortgage lending commissioner.
(2) “Finance commission” means the Finance Commission of Texas.
(3) “Residential mortgage loan” has the meaning assigned by § 180.002.
(4) “Residential real estate” has the meaning assigned by § 180.002.
(5) “Wrap borrower” means a person obligated to pay a wrap mortgage loan.
(6) “Wrap lender” means:
(A) a person who makes a wrap mortgage loan; or
(B) an owner of residential real estate who contracts with another person to make a wrap mortgage loan to a wrap borrower on the owner’s behalf to finance the purchase of the owner’s residential real estate.
(7) “Wrap mortgage loan” means a residential mortgage loan:
(A) made to finance the purchase of residential real estate that will continue to be subject to an unreleased lien that:
(i) attached to the residential real estate before the loan was made; and
(ii) secures a debt incurred by a person other than the wrap borrower that was not paid off at the time the loan was made; and
(B) obligating the wrap borrower to the wrap lender for payment of a debt the principal amount of which includes:
(i) the outstanding balance of the debt described by Paragraph (A)(ii); and
(ii) any remaining amount of the purchase price financed by the wrap lender.