§ 46.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
AdvertisingAs defined in 12 CFR 226.2(a)(2) (relating to definitions and rules of construction).
ApplicantA person who submits an application for a loan.
ApplicationAs defined in 24 CFR 3500.2(b) (relating to definitions).
Balloon paymentA scheduled loan payment that is more than twice as large as the average of earlier scheduled monthly payments.
CDCAThe Consumer Discount Company Act (7 P. S. § § 62016219).
ConsummationAs defined in 12 CFR 226.2(a)(13).
Covered loanA covered loan as defined in section 503 of the Mortgage Bankers and Brokers and Consumer Equity Protection Act (63 P. S. § 456.503).
Debt obligationAny amount owed for funds borrowed including interest requirements.
Fixed expensesAny debt obligations, revolving charge accounts, alimony payments, child support payments, payments under a separate maintenance agreement, housing association fees and property taxes and hazard insurance on the property to be mortgaged, whether or not the property taxes and hazard insurance are required to be escrowed.
Fully amortized payment scheduleAn amortizing payment schedule based on the term of the loan.
Fully indexed rateThe index rate plus the margin for the offered loan.
Hazard insuranceInsurance that covers property damage caused by fire, wind, storms and other similar risks.
IncomeGross income as defined in 26 U.S.C. § 61 (relating to definitions).
Index rateA published interest rate to which the interest rate on a variable rate loan is tied.
LicenseeA licensee broker or lender under the Mortgage Act or CDCA or a partially exempt entity under the Mortgage Act.
(i) A mortgage loan or a loan involving a mortgage by a licensee under the CDCA, or both, as the context may require.
(ii) The term does not include a covered loan.
Material changeA change of fact or circumstance that the licensee knows or reasonably should know would substantially affect an applicants ability to repay the offered loan, including an increase in the interest rate which would require a disclosure under 12 CFR 226.17(f)(2) (relating to general disclosure requirements).
MarginThe number of percentage points a lender adds to the index rate to calculate the interest rate at each adjustment period on variable rate loans.
Mortgage Act7 Pa.C.S. § § 61016153 (relating to mortgage loan industry licensing and consumer protection).
Mortgage loanAs defined in section 6102 of the Mortgage Act (relating to definitions).
Mortgage loan businessThe mortgage loan business as defined in section 6102 of the Mortgage Act and any kind of mortgage lending or brokering activity conducted by a licensee under the CDCA.
PersonA person as defined in section 6102 of the Mortgage Act and section 2 of the CDCA (7 P. S. § 6202), as applicable.
Property taxesThe taxes assessed, or a reasonable estimate of the taxes to be assessed, on the property being mortgaged based upon the full value of the property and any improvements thereon.
Reverse mortgageA loan that is a reverse mortgage transaction as defined in 12 CFR 226.33(a) (relating to requirements for reverse mortgages).
Variable rate loanA loan where the interest rate varies over the term of the loan.
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