§ 3806. Adjustable rate mortgage caps

Statutory text

In general

Any adjustable rate mortgage loan originated by a creditor shall include a limitation on the maximum interest rate that may apply during the term of the mortgage loan.

Regulations

The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section.

Enforcement

Any violation of this section shall be treated as a violation of the Truth in Lending Act [15 U.S.C. 1601 et seq.] and shall be subject to administrative enforcement under section 108 [15 U.S.C. 1607] or civil damages under section 130 [15 U.S.C. 1640] of such Act, or both.

Definitions

For the purpose of this section—

the term “creditor” means a person who regularly extends credit for personal, family, or household purposes; and

the term “adjustable rate mortgage loan” means any consumer loan secured by a lien on a one- to four-family dwelling unit, including a condominium unit, cooperative housing unit, or mobile home, where the loan is made pursuant to an agreement under which the creditor may, from time to time, adjust the rate of interest.

Effective date

This section shall take effect upon the expiration of 120 days after August 10, 1987.

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.

1987
Competitive Equality Banking Act of 1987
Pub. L. 100–86 title XII § 1204 · 101 Stat. 552
Enacted · 12 U.S.C. § 3806
Pub. L. 100–86, title XII, § 1204, Aug. 10, 1987, 101 Stat. 662
Source evidence
Code source credit
Pub. L. 100–86, title XII, § 1204, Aug. 10, 1987, 101 Stat. 662
Enacted provision · exact public law section
SEC. 1204. ADJUSTABLE RATE MORTGAGE CAPS. (a) In General.— Any adjustable rate mortgage loan originated by a creditor shall include a limitation on the maximum interest rate that may apply during the term of the mortgage loan. (b) Regulations.— The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section. (c) Enforcement.— Any violation of this section shall be treated 15 USC 1601 note. 15 USC 1607. 15 USC 1640. as a violation of the Truth in Lending Act and shall be subject to administrative enforcement under section 108 or civil damages under section 130 of such Act, or both. (d) Definitions.— For the purpose of this section— (1) the term “creditor” means a person who regularly extends credit for personal, family, or household purposes; and (2) the term “adjustable rate mortgage loan” means any loan secured by a lien on a one- to four-family dwelling unit, including a condominium unit, cooperative housing unit, or mobile home, where the loan is made pursuant to an agreement under which the creditor may, from time to time, adjust the rate of interest. (e) Effective Date.— This section shall take effect upon the expiration of 120 days after the date of enactment of this Act.
1992
Housing and Community Development Act of 1992
Pub. L. 102–550 title IX § 952 · 106 Stat. 3672
Substituted · 12 U.S.C. § 3806(d)(2)
Pub. L. 102–550 substituted “any consumer loan” for “any loan”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 102–550 substituted “any consumer loan” for “any loan”.

1 of 2 references resolved to an enrolled provision · 1 partial

Editorial Notes

References in Text

The Truth in Lending Act, referred to in subsec. (c), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables.

Codification

Section was enacted as part of the Competitive Equality Banking Act of 1987, and not as part of the Alternative Mortgage Transaction Parity Act of 1982 which comprises this chapter.

Amendments

1992—Subsec. (d)(2). Pub. L. 102–550 substituted “any consumer loan” for “any loan”.

Credits

1987–1992 · 2 acts

1987Pub. L. 100–86, title XII, § 1204, Aug. 10, 1987, 101 Stat. 662
1992Pub. L. 102–550, title IX, § 952, Oct. 28, 1992, 106 Stat. 3893.

Show as published

(Pub. L. 100–86, title XII, § 1204, Aug. 10, 1987, 101 Stat. 662; Pub. L. 102–550, title IX, § 952, Oct. 28, 1992, 106 Stat. 3893.)