Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 8 - JOINT FINANCIAL REGULATORY AGENCIES
Chapter 153 - HOME EQUITY LENDING
Section 153.1 - Definitions
Current through Reg. 49, No. 12; March 22, 2024
Any reference to Section 50 in this interpretation refers to Article XVI, Texas Constitution, unless otherwise noted. These words and terms have the following meanings when used in this chapter, unless the context indicates otherwise:
(1) Balloon--An installment that is more than an amount equal to twice the average of all installments scheduled before that installment.
(2) Business day .
(3) Closed or closing--The date when each owner and the spouse of each owner signs the equity loan agreement or the act of signing the equity loan agreement by each owner and the spouse of each owner.
(4) Consumer disclosure--The written notice contained in Section 50(g) that must be provided to the owner at least 12 days before the date the extension of credit is made.
(5) Cross-default provision--A provision in a loan agreement that puts the borrower in default if the borrower defaults on another obligation.
(6) Date the extension of credit is made--The date on which the closing of the equity loan occurs.
(7) E-Sign Act--The federal Electronic Signatures in Global and National Commerce Act, RSA 7001-RSA 7006.
(8) Equity loan--An extension of credit as defined and authorized under the provisions of Section 50(a)(6).
(9) Equity loan agreement--The documents evidencing the agreement between the parties of an equity loan.
(10) Fair market value--The fair market value of the homestead as determined on the date that the loan is closed.
(11) Force-placed insurance--Insurance purchased by the lender on the homestead when required insurance on the homestead is not maintained in accordance with the equity loan agreement.
(12) Interest--As used in Section 50(a)(6)(E), "interest" means the amount determined by multiplying the loan principal by the interest rate over a period of time.
(13) Lockout provision--A provision in a loan agreement that prohibits a borrower from paying the loan early.
(14) Owner--A person who has the right to possess, use, and convey, individually or with the joinder of another person, all or part of the homestead.
(15) Preclosing disclosure--The written itemized disclosure required by Section 50(a)(6)(M)(ii).
(16) Two percent limitation--The limitation on fees in Section 50(a)(6)(E).
(17) UETA--The Texas Uniform Electronic Transactions Act, Texas Business & Commerce Code, Chapter 322.