§ 3707A. Hybrid adjustable rate mortgages

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.

1. 2002

   Pub. L. 107–330 title III § 303(a) · 116 Stat. 2820

   Enacted · 38 U.S.C. § 3707A

   Added Pub. L. 107–330, title III, § 303(a), Dec. 6, 2002, 116 Stat. 2825

   Source evidence

   Code source credit
   Added Pub. L. 107–330, title III, § 303(a), Dec. 6, 2002, 116 Stat. 2825

   Enacted provision · exact public law section
   (a) Two-Year Demonstration Project to Guarantee Certain Adjustable Rate Mortgages.— Chapter 37 is amended by inserting after section 3707 the following new section: “§ 3707A. Hybrid adjustable rate mortgages “(a) The Secretary shall carry out a demonstration project under this section during fiscal years 2004 and 2005 for the purpose of guaranteeing loans in a manner similar to the manner in which the Secretary of Housing and Urban Development insures adjustable rate mortgages under section 251 of the National Housing Act in accordance with the provisions of this section with respect to hybrid adjustable rate mortgages described in subsection (b). “(b) Adjustable rate mortgages that are guaranteed under this section shall be adjustable rate mortgages (commonly referred to as ‘hybrid adjustable rate mortgages’) having interest rate adjustment provisions that— “(1) specify an initial rate of interest that is fixed for a period of not less than the first three years of the mortgage term; “(2) provide for an initial adjustment in the rate of interest by the mortgagee at the end of the period described in paragraph (1); and “(3) comply in such initial adjustment, and any subsequent adjustment, with subsection (c). “(c) Interest rate adjustment provisions of a mortgage guaranteed under this section shall— “(1) correspond to a specified national interest rate index approved by the Secretary, information on which is readily accessible to mortgagors from generally available published sources; “(2) be made by adjusting the monthly payment on an annual basis; “(3) be limited, with respect to any single annual interest rate adjustment, to a maximum increase or decrease of 1 percentage point; and “(4) be limited, over the term of the mortgage, to a maximum increase of 5 percentage points above the initial contract interest rate. “(d) The Secretary shall promulgate underwriting standards Standards. for loans guaranteed under this section, taking into account— “(1) the status of the interest rate index referred to in subsection (c)(1) and available at the time an underwriting decision is made, regardless of the actual initial rate offered by the lender; “(2) the maximum and likely amounts of increases in mortgage payments that the loans would require; “(3) the underwriting standards applicable to adjustable rate mortgages insured under title II of the National Housing Act; and “(4) such other factors as the Secretary finds appropriate. “(e) The Secretary shall require that the mortgagee make available to the mortgagor, at the time of loan application, a written explanation of the features of the adjustable rate mortgage, including a hypothetical payment schedule that displays the maximum potential increases in monthly payments to the mortgagor over the first five years of the mortgage term.”.

2. 2004

   Veterans Benefits Improvement Act of 2004

   Pub. L. 108–454 § 405(a) · 118 Stat. 3598

   Substituted · 38 U.S.C. § 3707A(a)

   Pub. L. 108–454, § 405(a), substituted “during fiscal years 2004 through 2008” for “during fiscal years 2004 and 2005”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 108–454, § 405(a), substituted “during fiscal years 2004 through 2008” for “during fiscal years 2004 and 2005”.

   Enacted provision · exact public law section
   (a) Extension of Authority.— Subsection (a) of section 3707A is amended by striking “during fiscal years 2004 and 2005” and inserting “during fiscal years 2004 through 2008”.

3. 2004

   Veterans Benefits Improvement Act of 2004

   Pub. L. 108–454 § 405(b)(2) · 118 Stat. 3598

   1. Added · 38 U.S.C. § 3707A(c)(3)

      Pub. L. 108–454, § 405(b)(2), added par. (3)

   2. Struck · 38 U.S.C. § 3707A(c)(3)

      Pub. L. 108–454, § 405(b)(2), struck out former par. (3) which read as follows: “be limited, with respect to any single annual interest rate adjustment, to a maximum increase or decrease of 1 percentage point; and”

   Source evidence

   Code amendment note
   Subsec. (c)(3). Pub. L. 108–454, § 405(b)(2), added par. (3) and struck out former par. (3) which read as follows: “be limited, with respect to any single annual interest rate adjustment, to a maximum increase or decrease of 1 percentage point; and”.

   Enacted provision · exact public law section
   (2) by striking paragraph (3) and inserting the following new paragraphs: “(3) in the case of the initial contract interest rate adjustment— “(A) if the initial contract interest rate remained fixed for less than 5 years, be limited to a maximum increase or decrease of 1 percentage point; or “(B) if the initial contract interest rate remained fixed for 5 years or more, be limited to a maximum increase or decrease of such percentage point or points as the Secretary may prescribe; “(4) in the case of any single annual interest rate adjustment after the initial contract interest rate adjustment, be limited to a maximum increase or decrease of 1 percentage point; and” ; and

4. 2004

   Veterans Benefits Improvement Act of 2004

   Pub. L. 108–454 § 405(b)(2) · 118 Stat. 3598

   Redesignated · 38 U.S.C. § 3707A(c)(4)

   Pub. L. 108–454, § 405(b)(2), added par. (4). Former par. (4) redesignated (5)

   Source evidence

   Code amendment note
   Subsec. (c)(4). Pub. L. 108–454, § 405(b)(2), added par. (4). Former par. (4) redesignated (5).

   Enacted provision · exact public law section
   (2) by striking paragraph (3) and inserting the following new paragraphs: “(3) in the case of the initial contract interest rate adjustment— “(A) if the initial contract interest rate remained fixed for less than 5 years, be limited to a maximum increase or decrease of 1 percentage point; or “(B) if the initial contract interest rate remained fixed for 5 years or more, be limited to a maximum increase or decrease of such percentage point or points as the Secretary may prescribe; “(4) in the case of any single annual interest rate adjustment after the initial contract interest rate adjustment, be limited to a maximum increase or decrease of 1 percentage point; and” ; and

5. 2004

   Veterans Benefits Improvement Act of 2004

   Pub. L. 108–454 § 405(b)(1) · 118 Stat. 3598

   1. Redesignated · 38 U.S.C. § 3707A(c)(5)

      Pub. L. 108–454, § 405(b)(1), (3), redesignated par. (4) as (5)

   2. Substituted · 38 U.S.C. § 3707A(c)(5)

      Pub. L. 108–454, § 405(b)(1), (3), substituted “such number of percentage points as the Secretary shall prescribe for purposes of this section” for “5 percentage points above the initial contract interest rate”

   Source evidence

   Code amendment note
   Subsec. (c)(5). Pub. L. 108–454, § 405(b)(1), (3), redesignated par. (4) as (5) and substituted “such number of percentage points as the Secretary shall prescribe for purposes of this section” for “5 percentage points above the initial contract interest rate”.

   Enacted provision · exact public law section
   (1) by redesignating paragraph (4) as paragraph (5);

6. 2006

   Veterans’ Housing Opportunity and Benefits Improvement Act of 2006

   Pub. L. 109–233 title I § 102 · 120 Stat. 397

   Substituted · 38 U.S.C. § 3707A(c)(4)

   Pub. L. 109–233 substituted “such percentage points as the Secretary may prescribe” for “1 percentage point”

   Source evidence

   Code amendment note
   Subsec. (c)(4). Pub. L. 109–233 substituted “such percentage points as the Secretary may prescribe” for “1 percentage point”.

   Enacted provision · exact public law section
   SEC. 102. ADJUSTABLE RATE MORTGAGES.   Section 3707A(c)(4) of title 38, United States Code, is amended by striking “1 percentage point” and inserting “such percentage points as the Secretary may prescribe”.

7. 2008

   Veterans’ Benefits Improvement Act of 2008

   Pub. L. 110–389 title V § 505(b) · 122 Stat. 4145

   Substituted · 38 U.S.C. § 3707A(a)

   Pub. L. 110–389 substituted “2012” for “2008”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 110–389 substituted “2012” for “2008”.

   Enacted provision · exact public law section
   (b) Extension of Demonstration Project on Hybrid Adjustable Rate Mortgages.— Section 3707A(a) of such title is amended by striking “2008” and inserting “2012”.

8. 2012

   Andrew Connolly Veterans Housing Act

   Pub. L. 112–154 title II § 209 · 126 Stat. 1165

   Substituted · 38 U.S.C. § 3707A(a)

   Pub. L. 112–154 substituted “project under this section” for “demonstration project under this section during fiscal years 2004 through 2012”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 112–154 substituted “project under this section” for “demonstration project under this section during fiscal years 2004 through 2012”.

   Enacted provision · exact public law section
   SEC. 209. MAKING PERMANENT PROJECT FOR INSURING HYBRID ADJUSTABLE RATE MORTGAGES.   Section 3707A(a) is amended by striking “demonstration project under this section during fiscal years 2004 through 2012” and inserting “project under this section”.

10 of 10 references resolved to an enrolled provision