{"data":{"id":"us-tn/tenn.-code-ann.-45-20-102","jurisdiction":"us-tn","citation":"Tenn. Code Ann. § 45-20-102","heading":"Chapter definitions","body":"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\ndefined 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.\nAs used in this chapter, unless the context otherwise requires:\n(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;\n(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;\n(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;\n(4) \"Borrower\" means a natural person obligated to pay a home loan, including a co-borrower;\n(5) \"Commissioner\" means the commissioner of financial institutions;\noints 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;\n(4) \"Borrower\" means a natural person obligated to pay a home loan, including a co-borrower;\n(5) \"Commissioner\" means the commissioner of financial institutions;\n(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;\n(7) \"Department\" means the department of financial institutions;\n(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;\n(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;\n(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);\n(B) The debt is incurred primarily for personal, family, or household purposes;\n(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\n(i) Designed principally for occupancy by one (1) to four (4) families; and\n(ii) That is or will be occupied by a borrower as the borrower's principal dwelling; and\n(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;\nin § 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;\n(i) Any residential mortgage transaction as defined in 12 CFR 226.2(a)(24) ;\n(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 ;\n(iii) A reverse mortgage transaction, as defined in title 47, chapter 30;\n(iv) A construction loan; and\n(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;\n(10) \"Lender\" means \"lender\" as defined in 24 CFR 3500.2 . \"Lender\" also means a \"mortgage loan broker\" as defined in § 45-13-102 ;\n(11) \"Person\" means any individual, corporation, partnership, trust, or any other business unit or legal entity, as the context may require;\n(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\";\n(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;\n(B) \"Points and fees\" shall exclude up to and including two (2) bona fide loan discount points; and\n(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\";\n(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;\n(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;\n(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;\n(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\ncommentary of the board of governors of the federal reserve system;\n(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;\n(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\n(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.\n(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\n(B) Eight percent (8%) of the total loan amount, if the total loan amount is thirty thousand dollars ($30,000) or less.","path":["TN Code","Title 45","Chapter 20"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_tn_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:26Z","sha256":"6e460263a29d0411b647bbbe045a3c70ffd00c13f8c4f9b04eec404f842fb94a","source_id":"us-tn","stale":false,"prev":"us-tn/tenn.-code-ann.-45-20-101","next":"us-tn/tenn.-code-ann.-45-20-103"},"notice":"GroundRules: Original legal text. Not legal advice."}