Texas Insurance Code 3502.157 – Limit On Insurance of Certain Loans
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(a) In this section, “contiguous” means not separated by more than one-half mile.
(b) A mortgage guaranty insurer may not insure loans secured by properties in a single housing tract or a contiguous tract in an amount that exceeds 10 percent of the insurer’s capital, surplus, and contingency reserve.
Terms Used In Texas Insurance Code 3502.157
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(c) In determining the amount of risk under this section, a mortgage guaranty insurer shall deduct from the total direct risk insured any applicable reinsurance in an assuming insurer authorized to engage in the business of mortgage guaranty insurance in this state.