2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 20 - TENNESSEE HOME LOAN PROTECTION ACT (§§ 45-20-101 — 45-20-111) › Section 45-20-102 - Chapter definitions

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;
(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 CFR 226.2(a)(24)
;
(ii)
An open-end credit loan as defined in section
12 CFR 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 CFR 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 CFR 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 CFR 226.4(c)(7)
, as provided in
12 CFR 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 CFR 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 CFR 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.
Acts 2006, ch. 801, § 2.