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Tex. Finance Code § 343.203

NEGATIVE AMORTIZATION

Texas · Texas Finance Code · Status: effective

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Tex. Finance Code § 343.203, NEGATIVE AMORTIZATION, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/647338
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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.