Texas Finance Code 343.203 – Negative Amortization
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Terms Used In Texas Finance Code 343.203
- Amortization: Paying off a loan by regular installments.
- Forbearance: A means of handling a delinquent loan. A
A high-cost home loan may not provide for a payment schedule with regular periodic payments that cause the principal balance to increase, except that this section does not prohibit negative amortization as a consequence of a temporary forbearance, bridge loan, or restructure sought by the borrower.