Texas Finance Code 343.201 – Definitions
Terms Used In Texas Finance Code 343.201
- Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
In this subchapter:
(1) “High-cost home loan” means a loan that:
(A) is made to one or more individuals for personal, family, or household purposes;
(B) is secured in whole or part by:
(i) a manufactured home, as defined by § 347.002, used or to be used as the borrower’s principal residence; or
(ii) real property improved by a dwelling designed for occupancy by four or fewer families and used or to be used as the borrower’s principal residence;
(C) has a principal amount equal to or less than one-half of the maximum conventional loan amount for first mortgages as established and adjusted by the Federal National Mortgage Association;
(D) is not:
(i) a reverse mortgage; or
(ii) an open-end account, as defined by § 301.002; and
(E) is a credit transaction described by 12 C.F.R. § 1026.32, as amended, except that the term includes a residential mortgage transaction, as defined by 12 C.F.R. § 1026.2, as amended, if the total loan amount is $20,000 or more and:
(i) the annual percentage rate exceeds the rate indicated in 12 C.F.R. § 1026.32(a)(1)(i), as amended; or
(ii) the total points and fees payable by the consumer at or before loan closing will exceed the amount indicated in 12 C.F.R. § 1026.32(a)(1)(ii), as amended.
(2) “Points and fees” has the meaning assigned by 12 C.F.R. § 1026.32(b), as amended.