As used in this chapter, unless the context otherwise requires:

(1) “Affiliate” means any company that controls, is controlled by, or is under common control with another company, as set forth in the federal Bank Holding Company Act of 1956 (12 U.S.C. § 1841 et seq.), and the regulations promulgated pursuant to that act;
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Terms Used In Tennessee Code 45-20-102

  • Affiliate: means any company that controls, is controlled by, or is under common control with another company, as set forth in the federal Bank Holding Company Act of 1956 (12 U. See Tennessee Code 45-20-102
  • Agriculture: means :
    (i) The land, buildings and machinery used in the commercial production of farm products and nursery stock. See Tennessee Code 1-3-105
  • 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
  • Annual percentage rate: means the annual percentage rate for the loan calculated according to the federal Truth-in-Lending Act (15 U. See Tennessee Code 45-20-102
  • Bank: means any person, as hereinafter defined, doing a banking business subject to the laws of this or any other jurisdiction and, for the purposes of supervision, examination and liquidation, includes industrial investment companies and industrial banks authorized by chapter 5 of this title. See Tennessee Code 45-1-103
  • Bona fide loan discount points: means loan discount points actually paid by the borrower to the lender for the purpose of reducing, and that in fact result in a bona fide reduction of, the interest rate applicable to the loan by a minimum of twenty-five (25) basis points per discount point. See Tennessee Code 45-20-102
  • Borrower: means a natural person obligated to pay a home loan, including a co-borrower. See Tennessee Code 45-20-102
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-20-102
  • Construction loan: means a loan for the initial construction of a borrower's principal dwelling on land owned by the borrower, with a maturity of less than eighteen (18) months, that only requires the payment of interest until the time that the entire unpaid balance is due and payable, or a fee in lieu of interest. See Tennessee Code 45-20-102
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Department: means the department of financial institutions. See Tennessee Code 45-20-102
  • Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
  • High-cost home loan: means a home loan in which the terms of the loan meet or exceed the rate threshold or the total points and fees threshold. See Tennessee Code 45-20-102
  • Home loan: means a loan in which:
    (A) The principal amount of the loan does not exceed the lesser of the conforming loan size limit for a single-family dwelling as established by the federal national mortgage association, or three hundred fifty thousand dollars ($350,000). See Tennessee Code 45-20-102
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Lender: means "lender" as defined in 24 C. See Tennessee Code 45-20-102
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) Source: OCC
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means any individual, corporation, partnership, trust, or any other business unit or legal entity, as the context may require. See Tennessee Code 45-20-102
  • Points and fees: means as defined in 12 C. See Tennessee Code 45-20-102
  • Rate threshold: means that the annual percentage rate of the loan at the time the loan is consummated is such that the loan is considered a mortgage pursuant to §. See Tennessee Code 45-20-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Total loan amount: means the term as defined in 12 C. See Tennessee Code 45-20-102
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(2) “Annual percentage rate” means the annual percentage rate for the loan calculated according to the federal Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), and the regulations, including official staff commentary, promulgated pursuant to that act, by the board of governors of the federal reserve system;
(3) “Bona fide loan discount points” means loan discount points actually paid by the borrower to the lender for the purpose of reducing, and that in fact result in a bona fide reduction of, the interest rate applicable to the loan by a minimum of twenty-five (25) basis points per discount point;
(4) “Borrower” means a natural person obligated to pay a home loan, including a co-borrower;
(5) “Commissioner” means the commissioner of financial institutions;
(6) “Construction loan” means a loan for the initial construction of a borrower’s principal dwelling on land owned by the borrower, with a maturity of less than eighteen (18) months, that only requires the payment of interest until the time that the entire unpaid balance is due and payable, or a fee in lieu of interest;
(7) “Department” means the department of financial institutions;
(8) “High-cost home loan” means a home loan in which the terms of the loan meet or exceed the rate threshold or the total points and fees threshold;
(9) “Home loan” means a loan in which:

(A) The principal amount of the loan does not exceed the lesser of the conforming loan size limit for a single-family dwelling as established by the federal national mortgage association, or three hundred fifty thousand dollars ($350,000);
(B) The debt is incurred primarily for personal, family, or household purposes;
(C) The loan is secured by a mortgage or deed of trust on real estate in this state, upon which there is located or there is to be located a structure:

(i) Designed principally for occupancy by one (1) to four (4) families; and
(ii) That is or will be occupied by a borrower as the borrower’s principal dwelling; and
(D) “Home loan” does not include:

(i) Any residential mortgage transaction as defined in 12 C.F.R. § 226.2(a)(24);
(ii) An open-end credit loan as defined in section 12 C.F.R. § 226.2(a)(20), and as used in the official staff commentary of the board of governors of the federal reserve system, except as provided in § 45-20-106;
(iii) A reverse mortgage transaction, as defined in title 47, chapter 30;
(iv) A construction loan; and
(v) Any loan that is insured or guaranteed by, securitized for, or sold to a government agency, including the department of housing and urban development, the department of veteran affairs, the Tennessee housing development agency, or the United States department of agriculture;
(10) “Lender” means “lender” as defined in 24 C.F.R. § 3500.2. “Lender” also means a “mortgage loan broker” as defined in § 45-13-102;
(11) “Person” means any individual, corporation, partnership, trust, or any other business unit or legal entity, as the context may require;
(12)

(A) “Points and fees” means as defined in 12 C.F.R. § 226.32, and as used in the official staff commentary of the board of governors of the federal reserve system;
(B) “Points and fees” shall exclude up to and including two (2) bona fide loan discount points; and
(C) “Points and fees” shall not include charges for all items listed in 12 C.F.R. § 226.4(c)(7), as provided in 12 C.F.R. § 226.32(b)(1)(iii), where the charges are paid to an affiliate of the lender and the amount is reasonably consistent with amounts charged for comparable services by a party not affiliated with the lender at the time the loan is made; provided, however, that only the amount of the charge that exceeds the charge for comparable items shall be included within the term “points and fees”;
(13) “Principal loan amount” is the total amount of money paid to, received by, or credited to the account of the borrower on which interest is to be computed;
(14) “Rate threshold” means that the annual percentage rate of the loan at the time the loan is consummated is such that the loan is considered a mortgage pursuant to § 152 of the Home Ownership Equity Protection Act of 1994 (15 U.S.C. § 1602(aa)), and the regulations adopted pursuant to 15 U.S.C. § 1602(aa) by the federal reserve system, including 12 C.F.R. § 226.32, and as used in the official staff commentary of the board of governors of the federal reserve system;
(15) “Servicer” means any person who in the regular course of business assumes responsibility for servicing and accepting payments for a high-cost home loan;
(16) “Total loan amount” means the term as defined in 12 C.F.R. § 226.32 and as used in the official staff commentary of the board of governors of the federal reserve system; and
(17) “Total points and fees threshold” means the total points and fees payable by the borrower at or before the loan closing that exceed:

(A) The greater of five percent (5%) of the total loan amount or two thousand four hundred dollars ($2,400), if the total loan amount is more than thirty thousand dollars ($30,000); or
(B) Eight percent (8%) of the total loan amount, if the total loan amount is thirty thousand dollars ($30,000) or less.
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