§ 3803. Alternative mortgage authority

Statutory text

General authority; compliance by banks, credit unions and all other housing creditors with applicable regulations

In order to prevent discrimination against State-chartered depository institutions, and other nonfederally chartered housing creditors, with respect to making, purchasing, and enforcing alternative mortgage transactions, housing creditors may make, purchase, and enforce alternative mortgage transactions, except that this section shall apply—

with respect to banks, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5582], in accordance with regulations governing alternative mortgage transactions as issued by the Comptroller of the Currency for national banks, to the extent that such regulations are authorized by rulemaking authority granted to the Comptroller of the Currency with regard to national banks under laws other than this section;

with respect to credit unions, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010, in accordance with regulations governing alternative mortgage transactions as issued by the National Credit Union Administration Board for Federal credit unions, to the extent that such regulations are authorized by rulemaking authority granted to the National Credit Union Administration with regard to Federal credit unions under laws other than this section;

with respect to all other housing creditors, including without limitation, savings and loan associations, mutual savings banks, and savings banks, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010, in accordance with regulations governing alternative mortgage transactions as issued by the Director of the Office of Thrift Supervision for federally chartered savings and loan associations, to the extent that such regulations are authorized by rulemaking authority granted to the Director of the Office of Thrift Supervision with regard to federally chartered savings and loan associations under laws other than this section; and

with respect to transactions made after the designated transfer date, only in accordance with regulations governing alternative mortgage transactions, as issued by the Bureau of Consumer Financial Protection for federally chartered housing creditors, in accordance with the rulemaking authority granted to the Bureau of Consumer Financial Protection with regard to federally chartered housing creditors under provisions of law other than this section.

Transactions deemed in compliance with applicable regulations

For the purpose of determining the applicability of this section, an alternative mortgage transaction shall be deemed to be made in accordance with the applicable regulation notwithstanding the housing creditor’s failure to comply with the regulation, if—

the transaction is in substantial compliance with the regulation; and

within sixty days of discovering any error, the housing creditor corrects such error, including making appropriate adjustments, if any, to the account.

Preemption of State law

An alternative mortgage transaction may be made by a housing creditor in accordance with this section, notwithstanding any State constitution, law, or regulation that prohibits an alternative mortgage transaction. For purposes of this subsection, a State constitution, law, or regulation that prohibits an alternative mortgage transaction does not include any State constitution, law, or regulation that regulates mortgage transactions generally, including any restriction on prepayment penalties or late charges.

Bureau actions

The Bureau of Consumer Financial Protection shall—

review the regulations identified by the Comptroller of the Currency and the National Credit Union Administration,1 (as those rules exist on the designated transfer date), as applicable under paragraphs (1) through (3) of subsection (a);

determine whether such regulations are fair and not deceptive and otherwise meet the objectives of the Consumer Financial Protection Act of 2010; and

promulgate regulations under subsection (a)(4) after the designated transfer date.

Designated transfer date

As used in this section, the term “designated transfer date” means the date determined under section 1062 of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5582].

Footnotes

1 So in original. The comma probably should not appear.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1982
Alternative Mortgage Transaction Parity Act of 1982
Pub. L. 97–320 title VIII § 804 · 96 Stat. 1469
Enacted · 12 U.S.C. § 3803
Pub. L. 97–320, title VIII, § 804, Oct. 15, 1982, 96 Stat. 1546
Source evidence
Code source credit
Pub. L. 97–320, title VIII, § 804, Oct. 15, 1982, 96 Stat. 1546
Enacted provision · exact public law section
Sec. 804. alternative mortgage authority (a) In order to prevent discrimination against State-chartered depository institutions, and other nonfederally chartered housing creditors, with respect to making, purchasing, and enforcing alternative mortgage transactions, housing creditors may make, purchase, and enforce alternative mortgage transactions, except that this section shall apply— (1) with respect to banks, only to transactions made in accordance with regulations governing alternative mortgage transactions as issued by the Comptroller of the Currency for national banks, to the extent that such regulations are authorized by rulemaking authority granted to the Comptroller of the Currency with regard to national banks under laws other than this section; (2) with respect to credit unions, only to transactions made in accordance with regulations governing alternative mortgage transactions as issued by the National Credit Union Administration Board for Federal credit unions, to the extent that such regulations are authorized by rulemaking authority granted to the National Credit Union Administration with regard to Federal credit unions under laws other than this section; and (3) with respect to all other housing creditors, including without limitation, savings and loan associations, mutual savings banks, and savings banks, only to transactions made in accordance with regulations governing alternative mortgage transactions as issued by the Federal Home Loan Bank Board for federally chartered savings and loan associations, to the extent that such regulations are authorized by rulemaking authority granted to the Federal Home Loan Bank Board with regard to federally chartered savings and loan associations under laws other than this section. (b) For the purpose of determining the applicability of this section, an alternative mortgage transaction shall be deemed to be made in accordance with the applicable regulation notwithstanding the housing creditor’s failure to comply with the regulation, if— (1) the transaction is in substantial compliance with the regulation; and (2) within sixty days of discovering any error, the housing creditor corrects such error, including making appropriate adjustments, if any, to the account. (c) An alternative mortgage transaction may be made by a housing creditor in accordance with this section, notwithstanding any State constitution, law, or regulation.
1989
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
Pub. L. 101–73 title VII § 744(c) · 103 Stat. 183
Substituted · 12 U.S.C. § 3803(a)(3)
Pub. L. 101–73 substituted “Director of the Office of Thrift Supervision” for “Federal Home Loan Bank Board” wherever appearing
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 101–73 substituted “Director of the Office of Thrift Supervision” for “Federal Home Loan Bank Board” wherever appearing.
Enacted provision · exact public law section
(c) Alternative Mortgage Transactions Parity Act.— The Alternative Mortgage Transactions Parity Act of 1982 (12 U.S.C. 3801–06) is amended by striking out “Federal Home Loan Bank Board” each place such term appears and inserting in lieu thereof “Director of the Office of Thrift Supervision”.
2010
Consumer Financial Protection Act of 2010
Pub. L. 111–203 § 1083(a)(2)(A)(i) · 124 Stat. 1376
Inserted · 12 U.S.C. § 3803(a)(1); 12 U.S.C. § 3803(a)(2); 12 U.S.C. § 3803(a)(3)
Pub. L. 111–203, § 1083(a)(2)(A)(i), inserted “on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010,” after “transactions made”
Source evidence
Code amendment note
Subsec. (a)(1), (2), (3). Pub. L. 111–203, § 1083(a)(2)(A)(i), inserted “on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010,” after “transactions made”.
Enacted provision · exact public law section
(i) in each of paragraphs (1), (2), and (3), by inserting after “transactions made” each place that term appears “on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010,”;
Effective date note
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1083(b) of Pub. L. 111–203, set out as a note under section 3802 of this title.
2010
Consumer Financial Protection Act of 2010
Pub. L. 111–203 § 1083(a)(2)(A)(ii) · 124 Stat. 1376
Added · 12 U.S.C. § 3803(a)(4)
Pub. L. 111–203, § 1083(a)(2)(A)(ii)–(iv), added par. (4)
Source evidence
Code amendment note
Subsec. (a)(4). Pub. L. 111–203, § 1083(a)(2)(A)(ii)–(iv), added par. (4).
Enacted provision · exact public law section
(ii) in paragraph (2), by striking “and” at the end;
Effective date note
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1083(b) of Pub. L. 111–203, set out as a note under section 3802 of this title.
2010
Consumer Financial Protection Act of 2010
Pub. L. 111–203 § 1083(a)(2)(B) · 124 Stat. 1376
1. Added · 12 U.S.C. § 3803(c)
  Pub. L. 111–203, § 1083(a)(2)(B), added subsec. (c)
2. Struck · 12 U.S.C. § 3803(c)
  Pub. L. 111–203, § 1083(a)(2)(B), struck out former subsec. (c). Prior to amendment, text read as follows: “An alternative mortgage transaction may be made by a housing creditor in accordance with this section, notwithstanding any State constitution, law, or regulation.”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 111–203, § 1083(a)(2)(B), added subsec. (c) and struck out former subsec. (c). Prior to amendment, text read as follows: “An alternative mortgage transaction may be made by a housing creditor in accordance with this section, notwithstanding any State constitution, law, or regulation.”
Enacted provision · exact public law section
(B) by striking subsection (c) and inserting the following: “(c) Preemption of State Law.— An alternative mortgage transaction may be made by a housing creditor in accordance with this section, notwithstanding any State constitution, law, or regulation that prohibits an alternative mortgage transaction. For purposes of this subsection, a State constitution, law, or regulation that prohibits an alternative mortgage transaction does not include any State constitution, law, or regulation that regulates mortgage transactions generally, including any restriction on prepayment penalties or late charges.” ; and
Effective date note
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1083(b) of Pub. L. 111–203, set out as a note under section 3802 of this title.
2010
Consumer Financial Protection Act of 2010
Pub. L. 111–203 § 1083(a)(2)(C) · 124 Stat. 1376
Added · 12 U.S.C. § 3803(d); 12 U.S.C. § 3803(e)
Pub. L. 111–203, § 1083(a)(2)(C), added subsecs. (d) and (e)
Source evidence
Code amendment note
Subsecs. (d), (e). Pub. L. 111–203, § 1083(a)(2)(C), added subsecs. (d) and (e).
Enacted provision · exact public law section
(C) by adding at the end the following: “(d) Bureau Actions.— The Bureau of Consumer Financial Protection shall— “(1) Review. review the regulations identified by the Comptroller of the Currency and the National Credit Union Administration, (as those rules exist on the designated transfer date), as applicable under paragraphs (1) through (3) of subsection (a); “(2) Determination. determine whether such regulations are fair and not deceptive and otherwise meet the objectives of the Consumer Financial Protection Act of 2010; and “(3) promulgate Regulations. regulations under subsection (a)(4) after the designated transfer date. “(e) Designated Transfer Date.— As used in this section, the term ‘designated transfer date’ means the date determined under section 1062 of the Consumer Financial Protection Act of 2010.” .
Effective date note
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1083(b) of Pub. L. 111–203, set out as a note under section 3802 of this title.

7 of 7 references resolved to an enrolled provision

Editorial Notes

References in Text

The Consumer Financial Protection Act of 2010, referred to in subsec. (d)(2), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, which enacted subchapter V (§ 5481 et seq.) of chapter 53 of this title and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables.

Amendments1989–2010 · 2 rounds

2010

Subsec. (a)(1), (2), (3). Pub. L. 111–203, § 1083(a)(2)(A)(i), inserted “on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010,” after “transactions made”.

Subsec. (a)(4). Pub. L. 111–203, § 1083(a)(2)(A)(ii)–(iv), added par. (4).

Subsec. (c). Pub. L. 111–203, § 1083(a)(2)(B), added subsec. (c) and struck out former subsec. (c). Prior to amendment, text read as follows: “An alternative mortgage transaction may be made by a housing creditor in accordance with this section, notwithstanding any State constitution, law, or regulation.”

Subsecs. (d), (e). Pub. L. 111–203, § 1083(a)(2)(C), added subsecs. (d) and (e).

1989

Subsec. (a)(3). Pub. L. 101–73 substituted “Director of the Office of Thrift Supervision” for “Federal Home Loan Bank Board” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1083(b) of Pub. L. 111–203, set out as a note under section 3802 of this title.

Effective Date

Section effective Oct. 15, 1982, see section 807(a) of Pub. L. 97–320, set out as a note under section 3801 of this title.

Credits

1982–2010 · 3 acts

1982Pub. L. 97–320, title VIII, § 804, Oct. 15, 1982, 96 Stat. 1546
1989Pub. L. 101–73, title VII, § 744(c), Aug. 9, 1989, 103 Stat. 438
2010Pub. L. 111–203, title X, § 1083(a)(2), July 21, 2010, 124 Stat. 2080.

Show as published

(Pub. L. 97–320, title VIII, § 804, Oct. 15, 1982, 96 Stat. 1546; Pub. L. 101–73, title VII, § 744(c), Aug. 9, 1989, 103 Stat. 438; Pub. L. 111–203, title X, § 1083(a)(2), July 21, 2010, 124 Stat. 2080.)