12 USC 4901 - Definitions

U.S Code last checked for updates: Nov 22, 2024

§ 4901.

Definitions

In this chapter, the following definitions shall apply:

(1)

Adjustable rate mortgage

(2)

Cancellation date

The term “cancellation date” means—

(A)

with respect to a fixed rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—

(i)

based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or

(ii)

based solely on actual payments, reaches 80 percent of the original value of the property securing the loan; and

(B)

with respect to an adjustable rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—

(i)

based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or

(ii)

based solely on actual payments, first reaches 80 percent of the original value of the property securing the loan.

(3)

Fixed rate mortgage

(4)

Good payment history

The term “good payment history” means, with respect to a mortgagor, that the mortgagor has not—

(A)

made a mortgage payment that was 60 days or longer past due during the 12-month period beginning 24 months before the later of (i) the date on which the mortgage reaches the cancellation date, or (ii) the date that the mortgagor submits a request for cancellation under section 4902(a)(1) of this title; or

(B)

made a mortgage payment that was 30 days or longer past due during the 12-month period preceding the later of (i) the date on which the mortgage reaches the cancellation date, or (ii) the date that the mortgagor submits a request for cancellation under section 4902(a)(1) of this title.

(5)

Initial amortization schedule

The term “initial amortization schedule” means a schedule established at the time at which a residential mortgage transaction is consummated with respect to a fixed rate mortgage, showing—

(A)

the amount of principal and interest that is due at regular intervals to retire the principal balance and accrued interest over the amortization period of the loan; and

(B)

the unpaid principal balance of the loan after each scheduled payment is made.

(6)

Amortization schedule then in effect

The term “amortization schedule then in effect” means, with respect to an adjustable rate mortgage, a schedule established at the time at which the residential mortgage transaction is consummated or, if such schedule has been changed or recalculated, is the most recent schedule under the terms of the note or mortgage, which shows—

(A)

the amount of principal and interest that is due at regular intervals to retire the principal balance and accrued interest over the remaining amortization period of the loan; and

(B)

the unpaid balance of the loan after each such scheduled payment is made.

(7)

Midpoint of the amortization period

(8)

Mortgage insurance

(9)

Mortgage insurer

(10)

Mortgagee

(11)

Mortgagor

(12)

Original value

(13)

Private mortgage insurance

(14)

Residential mortgage

(15)

Residential mortgage transaction

(16)

Servicer

(17)

Single-family dwelling

(18)

Termination date

The term “termination date” means—

(A)

with respect to a fixed rate mortgage, the date on which the principal balance of the mortgage, based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan; and

(B)

with respect to an adjustable rate mortgage, the date on which the principal balance of the mortgage, based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan.

(Pub. L. 105–216, § 2, July 29, 1998, 112 Stat. 897; Pub. L. 106–569, title IV, §§ 402(a)(1), (b), 405(a), 406(b)–(d), Dec. 27, 2000, 114 Stat. 2956, 2958, 2959.)

cite as: 12 USC 4901