Tenn. Comp. R. & Regs. 0180-17-.01 - DEFINITIONS

As used herein:

(1) "Brokerage Fee" means a fee charged by a mortgage loan broker or residential mortgage lender that is paid by or charged to a loan applicant for mortgage loan origination in which no part of the fee is for service rendered by a third party provider. For the purpose of this rule, brokerage fee is synonymous with finder fee.

(2) "Commitment" means a written offer to make a residential mortgage loan that is signed by a mortgage lender or that is signed by an employee authorized to sign such a written offer on behalf of a mortgage lender.

(3) "Commitment agreement" means a commitment accepted by an applicant for a residential mortgage loan, as evidenced by the applicant's signature thereon.

(4) "Fees paid to third persons" means the bona fide fees or charges paid by the applicant for a residential mortgage loan to third persons other than the mortgage lender or mortgage loan broker or paid by the applicant to or retained by the mortgage lender or mortgage loan broker for transmittal to such third persons in connection with the residential mortgage loan, including, but not limited to, mail service charges, tax service charges, recording taxes and fees, reconveyance or releasing fees, appraisal fees, credit report fees, attorney fees, fees for title reports and title searches, title insurance premiums, surveys, and similar charges.

(5) "Commitment fee" means any fee or charge accepted by a mortgage lender, or by a mortgage loan broker for transmittal to a mortgage lender, as consideration for binding the mortgage lender to make a residential mortgage loan in accordance with the terms of the commitment or as a requirement for acceptance by the applicant of a commitment. "Commitment fee" does not include interest or fees paid to third persons.

(6)

(a) "Lock-in agreement" means a written agreement between a mortgage lender and an applicant for a residential mortgage loan that establishes and sets an interest rate, discount points, and lock-in fees to be charged in connection with a residential mortgage loan that is closed within the time period specified in the agreement. A lock-in agreement can be entered into before a residential mortgage loan approval, subject to a residential mortgage loan being approved and closed, or after a residential mortgage loan approval.

(b) A "commitment agreement" that establishes and sets an interest rate, discount points, and the commitment fees to be charged in connection with a residential mortgage loan that is also closed within the time period specified in the agreement is a lock-in agreement.

(7) "Lock-in fee" means a fee or charge accepted by a mortgage lender, or by a mortgage loan broker for transmittal to a mortgage lender, as consideration for making a lock-in agreement. "Lock-in fee" does not include interest or fees paid to third persons.

(8) "Discount points" means a fee or charge retained or received by a mortgage lender or mortgage loan broker that is stated or calculated as a percentage or fraction of the principal amount of the residential mortgage loan. "Discount points" does not include interest, origination fees, or any fees paid to third persons.

(9) Unless otherwise provided, all other terms used herein shall have the meaning ascribed to them in the Tennessee Residential Lending, Brokerage and Servicing Act, Chapter 499 of the Public Acts of 2009.

Notes

Tenn. Comp. R. & Regs. 0180-17-.01

Original rule filed January 25, 1989; effective May 1, 1989. Repeal and new rule filed May 28, 2010; effective October 29, 2010.

Authority: T.C.A., Title 45, Chapter 13, Tennessee Residential Lending, Brokerage and Servicing Act; T.C.A. §§ 45-1-107(h), 45-13-206 and 45-13-103.