(1) “Authorized lender” or “lender” means:

(A) A bank, savings and loan association, savings bank, savings institution, or credit union chartered under the laws of the United States or of Tennessee;

(B) The Tennessee housing development agency (THDA); provided, that such agency has authority by THDA board resolution to issue mortgages under this chapter; or

(C) Any other person authorized to make home equity conversion loans by the commissioner of financial institutions;

(2) “Borrower” means a natural person who occupies and owns in fee simple individually, or with another borrower as tenants by the entireties or as joint tenants with right of survivorship, an interest in residential real property securing a reverse mortgage loan, and who borrows money under a reverse mortgage loan;

(3) “Commissioner” means the commissioner of financial institutions;

(4) “Counselor” means either:

(A) An individual who has completed a training curriculum on reverse mortgage counseling provided or approved by HUD and whose name is maintained on HUD's list of approved reverse mortgage counselors; or

(B) A person or entity qualified under Fannie Mae guidelines to serve as a counselor in consumer education;

(5) “Equity share” means any compensation, in addition to interest that has accrued on the outstanding balance, that the borrower has paid or agrees to pay to the lender at maturity of a reverse mortgage loan, which is equal to a percentage of the value of the property securing a reverse mortgage loan at maturity;

(6) “Fannie Mae” means The Federal National Mortgage Association, a corporation organized and existing under the laws of the United States;

(7) “Fannie Mae Reverse Mortgage Loan” means any reverse mortgage loan which complies with Fannie Mae guidelines and is purchased or securitized by Fannie Mae including a Home Keeper Mortgage Loan;

(8) “Home equity conversion mortgage loan” means a loan for a definite or indefinite term:

(A) Secured by a first mortgage or first deed of trust on the principal residence of the mortgagor;

(B) The proceeds of which are disbursed to the mortgagor in one (1) or more lump sums, or in equal or unequal installments, either directly by the lender or the lender's agent;

(C) That requires no repayment until a future time, upon the earliest occurrence of one (1) or more events specified in the reverse mortgage loan contract; and

(D) Is labeled clearly on the face of the note and deed of trust or mortgage, if a HUD Loan, “This is a Home Equity Conversion Mortgage Loan pursuant to Tennessee Code Annotated, Title 47, Chapter 30,” or, if it is a Fannie Mae Reverse Mortgage Loan, contains on the face of the note and deed of trust or mortgage the words “Home Keeper Mortgage” or “Fannie Mae Reverse Mortgage,” pursuant to this chapter;

(9) “HUD” means the United States department of housing and urban development;

(10) “Outstanding balance” means the current net amount of money owed by the borrower to the lender, calculated in accordance with § 47-30-106, whether or not the sum is suspended under the terms of the reverse mortgage loan agreement or is immediately due and payable;

(11) “Reverse mortgage” means a mortgage or deed of trust securing a home equity conversion loan or reverse mortgage loan;

(12) “Reverse mortgage loan” means a home equity conversion mortgage loan issued under the terms of this chapter;

(13) “Securitized” means converting mortgages or deeds of trust into securities that may be purchased by investors;

(14) “Shared appreciation” means an agreement by the lender and the borrower that, in addition to any interest accruing on the outstanding balance of a reverse mortgage loan, the lender may collect an additional amount equal to a percentage of any net appreciated value of the property during the term of the reverse mortgage loan; and

(15) “Total annual percentage rate” means the annual average rate of interest, which provides the total amount owed at loan maturity when this rate is applied to the loan advances, excluding closing costs not paid to third parties, over the term of the reverse mortgage loan.