12 U.S.C. § 4901 — Definitions

In this chapter, these definitions apply.
(1) “Adjustable rate mortgage” means a residential mortgage whose interest rate can change. A residential mortgage also counts as an adjustable rate mortgage if (A) it does not fully pay off the principal during the obligation’s term, and (B) it includes a conditional right to refinance or change the unpaid principal at the term’s maturity date.
(2) “Cancellation date” means the following date, at the mortgagor’s choice. (A) For a fixed rate mortgage, it is the date on which the mortgage’s principal balance—(i) based only on the mortgage’s initial amortization schedule, and without considering the mortgage’s outstanding balance on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or (ii) based only on actual payments, reaches 80 percent of the original value of the property securing the loan. (B) For an adjustable rate mortgage, it is the date on which the mortgage’s principal balance—(i) based only on the amortization schedule then in effect, and without considering the mortgage’s outstanding balance on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or (ii) based only on actual payments, first reaches 80 percent of the original value of the property securing the loan.
(3) “Fixed rate mortgage” means a residential mortgage whose interest rate cannot change.
(4) “Good payment history” means, for a mortgagor, that the mortgagor has not—(A) made a mortgage payment that was 60 or more days late during the 12-month period beginning 24 months before the later of (i) the date the mortgage reaches the cancellation date, or (ii) the date the mortgagor submits a cancellation request under section 4902(a)(1) of this title; or (B) made a mortgage payment that was 30 or more days late during the 12-month period before the later of (i) the date the mortgage reaches the cancellation date, or (ii) the date the mortgagor submits a cancellation request under section 4902(a)(1) of this title.
(5) “Initial amortization schedule” means a schedule established when a residential mortgage transaction is completed, for a fixed rate mortgage, that shows—(A) the amount of principal and interest due at regular times to pay off the principal balance and accumulated interest over the loan’s amortization period; and (B) the loan’s unpaid principal balance after each scheduled payment.
(6) “Amortization schedule then in effect” means, for an adjustable rate mortgage, a schedule established when the residential mortgage transaction is completed or, if the schedule has been changed or recalculated, the most recent schedule under the note or mortgage’s terms. It shows—(A) the amount of principal and interest due at regular times to pay off the principal balance and accumulated interest over the loan’s remaining amortization period; and (B) the loan’s unpaid balance after each scheduled payment. This section does not define the terms “note” or “mortgage.”
(7) “Midpoint of the amortization period” means, for a residential mortgage transaction, the time halfway through the period that starts on the first day of the amortization period established when the transaction is completed and ends when the entire period over which the mortgage is scheduled to be paid off is completed.
(8) “Mortgage insurance” means insurance, including mortgage guaranty insurance, against nonpayment of or default on an individual mortgage or loan involved in a residential mortgage transaction.
(9) “Mortgage insurer” means a provider of private mortgage insurance, as described in this chapter, that is authorized to conduct that business in the State^* where it conducts that business.
(10) “Mortgagee” means the holder of a residential mortgage when that mortgage transaction is completed.
(11) “Mortgagor” means the original borrower under a residential mortgage, or the borrower’s successors or assignees.
(12) “Original value” means, for a residential mortgage transaction, the lower of the property’s sales price shown in the contract or the property’s appraised value when the transaction is completed. For a residential mortgage transaction that refinances the mortgagor’s principal residence, it means only the appraised value that the mortgagee relied on to approve the refinance transaction.
(13) “Private mortgage insurance” means mortgage insurance other than mortgage insurance made available under the National Housing Act, title 38, or title V of the Housing Act of 1949.
(14) “Residential mortgage” means a mortgage, loan, or other evidence of a security interest created for a single-family dwelling that is the mortgagor’s principal residence.
(15) “Residential mortgage transaction” means a transaction completed on or after the date one year after July 29, 1998, 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 kept against a single-family dwelling that is the mortgagor’s principal residence, to finance acquiring, initially constructing, or refinancing that dwelling.
(16) “Servicer” has the same meaning as in section 2605(i)(2) of this title, for a residential mortgage. This section does not define that term.
(17) “Single-family dwelling” means a residence consisting of one family dwelling unit.
(18) “Termination date” means—(A) for a fixed rate mortgage, the date on which the mortgage’s principal balance, based only on its initial amortization schedule and without considering its outstanding balance on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan; and (B) for an adjustable rate mortgage, the date on which the mortgage’s principal balance, based only on the amortization schedule then in effect and without considering its outstanding balance on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan.