Opinion ID: 38079
Heading Depth: 2
Heading Rank: 1

Heading: The Mortgage Loan

Text: The Jenkinses purchased a home in Frisco, Texas in November 2000. NovaStar, a residential mortgage lender, provided the purchase-money loan secured by a deed of trust that was a first mortgage lien on the property.1 At the loan closing, the Jenkinses 1 Presumably, the home became the Jenkinses’ community property and each was jointly and severally liable on the purchase obligation. 2 executed a mortgage note, a Deed of Trust (“mortgage”), and an Impound Authorization Agreement and First Payment Notification (“escrow agreement”). The escrow agreement authorized NovaStar to collect and escrow funds from the Jenkinses “to pay for taxes, insurance premiums, assessments, or other items relating to the property on [their] behalf.”2 Consistent with the escrow agreement, NovaStar sent invoices to the Jenkinses in the amount of $2,808.70 each on or about the tenth day of each calendar month. In addition to the basic amount required to amortize principal and interest on the loan, the $2,808.70 included the estimated amount needed to cover property taxes and flood and fire insurance premiums on the encumbered property.