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12 U.S.C. § 3806 - U.S. Code - Unannotated Title 12. Banks and Banking § 3806. Adjustable rate mortgage caps

Current as of January 01, 2024 | Updated by Findlaw Staff

(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 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 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.

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Cite this article: FindLaw.com - 12 U.S.C. § 3806 - U.S. Code - Unannotated Title 12. Banks and Banking § 3806. Adjustable rate mortgage caps - last updated January 01, 2024 | https://codes.findlaw.com/us/title-12-banks-and-banking/12-usc-sect-3806/

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