Definitions

(1) As used in Rules 0770—1—2—.01 through .21 of these regulations, the following terms shall have the meanings indicated: (a) Home. A fee simple or eligible leasehold interest in an owner occupied dwelling as defined in T.C.A. §13—23—117 which is located in the State of Tennessee and used as the mortgagor’s residence. It shall include a one family unit in a condominium multi-family project together with an undivided interest in the common elements and limited common elements in such condominium project. (b) Existing Building. A newly-constructed or previously occupied home. (c) Leasehold Interest. A leasehold under a lease the original term of which is for a period longer than 15 years and has a remaining term at least 17 years longer than the repayment period of the loan. (d) Common Elements. Those common elements described in the Master Deed of a condominium project duly constituted pursuant to the Horizontal Property Act of the State of Tennessee. HOMEOWNERSHIP LOAN PROGRAM CHAPTER 0770-1-2 (e) Limited Common Elements. Those limited common elements described in the Master Deed of a condominium project duly constituted pursuant to the Horizontal Property Act of the State of Tennessee. (f) Maturity. The date on which the mortgage indebtedness would be liquidated if paid in accordance with periodic payments provided for in the loan documents. (g) Insured Mortgage. Security for a loan, which constitutes a first lien on a fee interest or eligible leasehold interest in a home, the sufficiency of which security is insured by a policy of insurance or guaranty written by a qualified insurer. The term mortgage shall include a deed of trust. For the purposes of this program and these regulations an insured mortgage shall also mean security for a loan, which security constitutes a first lien on a fee interest or eligible leasehold interest on a home in which the borrower owns, or is ‘‘prepared to own by use of a cash down payment’’, at least 25% equity in the property based on its appraisal value or the sale price, whichever is the lesser amount. (h) Qualified Insurer. Any public or private entity qualified to insure the sufficiency of or to guarantee mortgages in Tennessee and approved by the Agency. The Executive Director will review and certify from time to time those entities who meet the requirements of being a ‘‘qualified insurer’’. (i) Mortgagor. The original borrower under a mortgage and the heirs, executors, administrators and assigns. (j) Owner. The owner of a fully marketable title. Also, the holder of a life estate having the usual rights of present possession, control and beneficial use of the property. A reminaderman is not an owner. (k) Originating Agent. A qualified lender, as defined in T.C.A. §13—23—103 (4), which either is an FHA or VA approved mortgagee or supervised by a state or federal regulatory body, and which has entered into a Working Agreement to originate and process Homeownership Loans for the Agency. (l) Eligible Servicer. An Eligible Servicer is any financial institution which is an FHA or VA approved mortgagee, or an approved Seller-Servicer of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, and which is located and authorized to do business in the State of Tennessee and which is approved by the Agency.