Tex. Gov't Code § 2257.0025 · Subchapter A. GENERAL PROVISIONS
HIGH-RISK MORTGAGE SECURITY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) For purposes of this chapter, a fixed-rate collateralized mortgage obligation is a high-risk mortgage security if the security:
(1) has an average life sensitivity with a weighted average life that:
(A) extends by more than four years, assuming an immediate and sustained parallel shift in the yield curve of plus 300 basis points; or
(B) shortens by more than six years, assuming an immediate and sustained parallel shift in the yield curve of minus 300 basis points; and
(2) is price sensitive; that is, the estimated change in the price of the mortgage derivative product is more than 17 percent, because of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points.
(b) For purposes of this chapter, a floating-rate collateralized mortgage obligation is a high-risk mortgage security if the security:
(1) bears an interest rate that is equal to the contractual cap on the instrument; or
(2) is price sensitive; that is, the estimated change in the price of the mortgage derivative product is more than 17 percent, because of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points.
Notes and commentary — not statutory text
History
Added by Acts 1997, 75th Leg., ch. 254, Sec. 2, eff. Sept. 1, 1997.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2257.htm
- Text hash
- sha256 7497be86aa34eb2bfb53c70a23d0e984e9ae6b3da14ff812bfb04d9a8f5c7882
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.