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.
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.
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.
(e) Effective date
This section shall take effect upon the expiration of 120 days after August 10, 1987.
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”.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.