{"identifier":"/us/usc/t12/s4901","title":12,"num":"\u00a7\u202f4901.","heading":"Definitions","text":"\u00a7\u202f4901.\nDefinitions\nIn this chapter, the following definitions shall apply:\n(1)\nAdjustable rate mortgage\nThe term \u201cadjustable rate mortgage\u201d means a residential mortgage that has an interest rate that is subject to change. A residential mortgage that: (A) does not fully amortize over the term of the obligation; and (B) contains a conditional right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable rate mortgage for purposes of this chapter.\n(2)\nCancellation date\nThe term \u201ccancellation date\u201d means\u2014\n(A) with respect to a fixed rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage\u2014\n(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\n(ii) based solely on actual payments, reaches 80 percent of the original value of the property securing the loan; and\n(B) with respect to an adjustable rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage\u2014\n(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\n(ii) based solely on actual payments, first reaches 80 percent of the original value of the property securing the loan.\n(3)\nFixed rate mortgage\nThe term \u201cfixed rate mortgage\u201d means a residential mortgage that has an interest rate that is not subject to change.\n(4)\nGood payment history\nThe term \u201cgood payment history\u201d means, with respect to a mortgagor, that the mortgagor has not\u2014\n(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\nsection 4902(a)(1) of this title\n(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\nsection 4902(a)(1) of this title\n(5)\nInitial amortization schedule\nThe term \u201cinitial amortization schedule\u201d means a schedule established at the time at which a residential mortgage transaction is consummated with respect to a fixed rate mortgage, showing\u2014\n(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\n(B) the unpaid principal balance of the loan after each scheduled payment is made.\n(6)\nAmortization schedule then in effect\nThe term \u201camortization schedule then in effect\u201d 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\u2014\n(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\n(B) the unpaid balance of the loan after each such scheduled payment is made.\n(7)\nMidpoint of the amortization period\nThe term \u201cmidpoint of the amortization period\u201d means, with respect to a residential mortgage transaction, the point in time that is halfway through the period that begins upon the first day of the amortization period established at the time a residential mortgage transaction is consummated and ends upon the completion of the entire period over which the mortgage is scheduled to be amortized.\n(8)\nMortgage insurance\nThe term \u201cmortgage insurance\u201d means insurance, including any mortgage guaranty insurance, against the nonpayment of, or default on, an individual mortgage or loan involved in a residential mortgage transaction.\n(9)\nMortgage insurer\nThe term \u201cmortgage insurer\u201d means a provider of private mortgage insurance, as described in this chapter, that is authorized to transact such business in the State in which the provider is transacting such business.\n(10)\nMortgagee\nThe term \u201cmortgagee\u201d means the holder of a residential mortgage at the time at which that mortgage transaction is consummated.\n(11)\nMortgagor\nThe term \u201cmortgagor\u201d means the original borrower under a residential mortgage or his or her successors or assignees.\n(12)\nOriginal value\nThe term \u201coriginal value\u201d, with respect to a residential mortgage transaction, means the lesser of the sales price of the property securing the mortgage, as reflected in the contract, or the appraised value at the time at which the subject residential mortgage transaction was consummated. In the case of a residential mortgage transaction for refinancing the principal residence of the mortgagor, such term means only the appraised value relied upon by the mortgagee to approve the refinance transaction.\n(13)\nPrivate mortgage insurance\nThe term \u201cprivate mortgage insurance\u201d means mortgage insurance other than mortgage insurance made available under the National Housing Act [\n12 U.S.C. 1701\n42 U.S.C. 1471\n(14)\nResidential mortgage\nThe term \u201cresidential mortgage\u201d means a mortgage, loan, or other evidence of a security interest created with respect to a single-family dwelling that is the principal residence of the mortgagor.\n(15)\nResidential mortgage transaction\nThe term \u201cresidential mortgage transaction\u201d means a transaction consummated on or after the date that is 1 year after\nJuly 29, 1998\n(16)\nServicer\nThe term \u201cservicer\u201d has the same meaning as in\nsection 2605(i)(2) of this title\n(17)\nSingle-family dwelling\nThe term \u201csingle-family dwelling\u201d means a residence consisting of 1 family dwelling unit.\n(18)\nTermination date\nThe term \u201ctermination date\u201d means\u2014\n(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\n(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.","url":"https://projectusc.org/usc/t12/s4901.html","content":[{"t":"sec","id":"/us/usc/t12/s4901","children":[{"t":"num","text":"\u00a7\u202f4901."},{"t":"heading","text":"Definitions","tail":"\n"},{"t":"chapeau","text":"In this chapter, the following definitions shall apply:"},{"t":"para","id":"/us/usc/t12/s4901/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Adjustable rate mortgage"},{"t":"content","children":[{"t":"p","text":"The term \u201cadjustable rate mortgage\u201d means a residential mortgage that has an interest rate that is subject to change. A residential mortgage that: (A) does not fully amortize over the term of the obligation; and (B) contains a conditional right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable rate mortgage for purposes of this chapter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Cancellation date"},{"t":"chapeau","text":"The term \u201ccancellation date\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t12/s4901/2/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" with respect to a fixed rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage\u2014"},{"t":"clause","id":"/us/usc/t12/s4901/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s4901/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" based solely on actual payments, reaches 80 percent of the original value of the property securing the loan; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s4901/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" with respect to an adjustable rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage\u2014"},{"t":"clause","id":"/us/usc/t12/s4901/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s4901/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" based solely on actual payments, first reaches 80 percent of the original value of the property securing the loan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Fixed rate mortgage"},{"t":"content","children":[{"t":"p","text":"The term \u201cfixed rate mortgage\u201d means a residential mortgage that has an interest rate that is not subject to change.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Good payment history"},{"t":"chapeau","text":"The term \u201cgood payment history\u201d means, with respect to a mortgagor, that the mortgagor has not\u2014"},{"t":"subpara","id":"/us/usc/t12/s4901/4/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" 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 ","children":[{"t":"ref","text":"section 4902(a)(1) of this title","href":"/us/usc/t12/s4902/a/1","tail":"; or"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s4901/4/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 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 ","children":[{"t":"ref","text":"section 4902(a)(1) of this title","href":"/us/usc/t12/s4902/a/1","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Initial amortization schedule"},{"t":"chapeau","text":"The term \u201cinitial amortization schedule\u201d means a schedule established at the time at which a residential mortgage transaction is consummated with respect to a fixed rate mortgage, showing\u2014"},{"t":"subpara","id":"/us/usc/t12/s4901/5/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s4901/5/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the unpaid principal balance of the loan after each scheduled payment is made.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Amortization schedule then in effect"},{"t":"chapeau","text":"The term \u201camortization schedule then in effect\u201d 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\u2014"},{"t":"subpara","id":"/us/usc/t12/s4901/6/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s4901/6/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the unpaid balance of the loan after each such scheduled payment is made.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Midpoint of the amortization period"},{"t":"content","children":[{"t":"p","text":"The term \u201cmidpoint of the amortization period\u201d means, with respect to a residential mortgage transaction, the point in time that is halfway through the period that begins upon the first day of the amortization period established at the time a residential mortgage transaction is consummated and ends upon the completion of the entire period over which the mortgage is scheduled to be amortized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"Mortgage insurance"},{"t":"content","children":[{"t":"p","text":"The term \u201cmortgage insurance\u201d means insurance, including any mortgage guaranty insurance, against the nonpayment of, or default on, an individual mortgage or loan involved in a residential mortgage transaction.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/9","children":[{"t":"num","text":"(9)"},{"t":"heading","text":"Mortgage insurer"},{"t":"content","children":[{"t":"p","text":"The term \u201cmortgage insurer\u201d means a provider of private mortgage insurance, as described in this chapter, that is authorized to transact such business in the State in which the provider is transacting such business.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/10","children":[{"t":"num","text":"(10)"},{"t":"heading","text":"Mortgagee"},{"t":"content","children":[{"t":"p","text":"The term \u201cmortgagee\u201d means the holder of a residential mortgage at the time at which that mortgage transaction is consummated.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/11","children":[{"t":"num","text":"(11)"},{"t":"heading","text":"Mortgagor"},{"t":"content","children":[{"t":"p","text":"The term \u201cmortgagor\u201d means the original borrower under a residential mortgage or his or her successors or assignees.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/12","children":[{"t":"num","text":"(12)"},{"t":"heading","text":"Original value"},{"t":"content","children":[{"t":"p","text":"The term \u201coriginal value\u201d, with respect to a residential mortgage transaction, means the lesser of the sales price of the property securing the mortgage, as reflected in the contract, or the appraised value at the time at which the subject residential mortgage transaction was consummated. In the case of a residential mortgage transaction for refinancing the principal residence of the mortgagor, such term means only the appraised value relied upon by the mortgagee to approve the refinance transaction.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/13","children":[{"t":"num","text":"(13)"},{"t":"heading","text":"Private mortgage insurance"},{"t":"content","children":[{"t":"p","text":"The term \u201cprivate mortgage insurance\u201d means mortgage insurance other than mortgage insurance made available under the National Housing Act [","children":[{"t":"ref","text":"12 U.S.C. 1701","href":"/us/usc/t12/s1701","tail":" et seq.], title 38, or title V of the Housing Act of 1949 ["},{"t":"ref","text":"42 U.S.C. 1471","href":"/us/usc/t42/s1471","tail":" et seq.]."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/14","children":[{"t":"num","text":"(14)"},{"t":"heading","text":"Residential mortgage"},{"t":"content","children":[{"t":"p","text":"The term \u201cresidential mortgage\u201d means a mortgage, loan, or other evidence of a security interest created with respect to a single-family dwelling that is the principal residence of the mortgagor.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/15","children":[{"t":"num","text":"(15)"},{"t":"heading","text":"Residential mortgage transaction"},{"t":"content","children":[{"t":"p","text":"The term \u201cresidential mortgage transaction\u201d means a transaction consummated on or after the date that is 1 year after ","children":[{"t":"text","text":"July 29, 1998","tail":", in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against a single-family dwelling that is the principal residence of the mortgagor to finance the acquisition, initial construction, or refinancing of that dwelling."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/16","children":[{"t":"num","text":"(16)"},{"t":"heading","text":"Servicer"},{"t":"content","children":[{"t":"p","text":"The term \u201cservicer\u201d has the same meaning as in ","children":[{"t":"ref","text":"section 2605(i)(2) of this title","href":"/us/usc/t12/s2605/i/2","tail":", with respect to a residential mortgage."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/17","children":[{"t":"num","text":"(17)"},{"t":"heading","text":"Single-family dwelling"},{"t":"content","children":[{"t":"p","text":"The term \u201csingle-family dwelling\u201d means a residence consisting of 1 family dwelling unit.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4901/18","children":[{"t":"num","text":"(18)"},{"t":"heading","text":"Termination date"},{"t":"chapeau","text":"The term \u201ctermination date\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t12/s4901/18/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s4901/18/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}