Texas Finance Code
§ 343.203 — NEGATIVE AMORTIZATION
FI § 343.203Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 343. HOME LOANS · Art. C. HIGH-COST HOME LOANS
Statute text
View on sourceA high-cost home loan may not provide for a payment schedule with regular periodic payments that cause the principal balance to increase, except that this section does not prohibit negative amortization as a consequence of a temporary forbearance, bridge loan, or restructure sought by the borrower.
Legislative history
Added by Acts 2001, 77th Leg., ch. 622, Sec. 1, eff. Sept. 1, 2001.