Residential Loan Transaction Law and Legal Definition

Residential loan transaction is defined as a "transaction in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against the consumer's dwelling to finance the acquisition or initial construction of such dwelling." Lechner v. Citimortgage, Inc., 2009 U.S. Dist. LEXIS 65836, 12-13 (N.D. Tex. July 29, 2009)