Sec. 343.203. NEGATIVE AMORTIZATION. A 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.
Added by Acts 2001, 77th Leg., ch. 622, Sec. 1, eff. Sept. 1, 2001.
Structure Texas Statutes
Title 4 - Regulation of Interest, Loans, and Financed Transactions
Subtitle B - Loans and Financed Transactions
Subchapter C. High-Cost Home Loans
Section 343.202. Balloon Payment
Section 343.203. Negative Amortization
Section 343.204. Consideration of Obligor's Payment Ability
Section 343.205. Prepayment Penalties Prohibited
Section 343.206. Charge Prohibited for Product or Service Not Received