### Question
How is the term residential mortgage transaction defined?


### Answer
The term **residential mortgage transaction** is defined in *15 U.S.C. § 1602* as the following:

> a transaction in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against the consumer's dwelling to finance the acquisition or initial construction of such dwelling

#### Citation:
  - *15 U.S.C. § 1602*
  - Heading: **CHAPTER 41-CONSUMER CREDIT PROTECTION > SUBCHAPTER I-CONSUMER CREDIT COST DISCLOSURE > Part A-General Provisions**

