12 U.S. Code § 3806 - Adjustable rate mortgage caps
prev | next
(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.
The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section.
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 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.
Source(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.)
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, as amended, 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.
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.
1992—Subsec. (d)(2). Pub. L. 102–550substituted “any consumer loan” for “any loan”.