Covered Loan Law and Legal Definition
Covered loan means a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by the Federal National Mortgage Association in the case of a mortgage or deed of trust. For a consumer loan to be a covered loan any one of the following conditions must be met:
(1)the annual percentage rate at consummation of the transaction must exceed by more than eight percentage points the yield on treasury securities; or
(2)the total points and fees payable by the consumer at or before closing for a mortgage or deed of trust must exceed 6 percent of the total loan amount [Cal Fin Code § 4970 (b)].
Legal Definition list
- Covered Legislative Branch Official
- Covered Institution
- Covered Flight Segment [Aeronautics and Space]
- Covered Fleet
- Covered Financial Company [Banks & Banking]
- Covered Loan
- Covered Military Member
- Covered Multifamily Dwellings [HUD]
- Covered Noncareer Employee [Administrative Personnel]
- Covered Offshore Facility [Oil Spill]
- Covered Osteoporosis Drug
Related Legal Terms
- Acquisition and Improvement Loan [Veterans' Relief]
- Acquisition Loan [HUD]
- Acquisition, Development and Construction (ADC) Loan
- Adjustable Rate Mortgage Loan
- Administrative Cost of Issuing a Loan Guarantee
- After-Discovered Evidence
- Air Loan
- Allowance for Loan and Lease Losses
- Amortized Loan
- Automatic Premium Loan Option
