A Texas lender asks whether a reverse mortgage priced above the triggers falls under the high-cost chapter in 2026. Does the state high-cost definition include this reverse mortgage merely because pricing exceeds the thresholds?
Correct Answer
C) No: a reverse mortgage and an open-end account are both excluded
The definition expressly excludes a reverse mortgage and an open-end account as defined by Section 301.002, and the chapter itself does not apply to either. Other choices: pricing alone does not bring a product inside a definition that excludes it by type; the borrower being 62 is a program eligibility fact rather than a coverage test; and the exclusion does not turn on government insurance. Source: Tex. Fin. Code sec. 343.201(1)(D) and sec. 343.002(b)
Why This Is the Correct Answer
The definition expressly excludes a reverse mortgage and an open-end account as defined by Section 301.002, and the chapter itself does not apply to either. Other choices: pricing alone does not bring a product inside a definition that excludes it by type; the borrower being 62 is a program eligibility fact rather than a coverage test; and the exclusion does not turn on government insurance. Source: Tex. Fin. Code sec. 343.201(1)(D) and sec. 343.002(b)
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