§ 1638a. Reset of hybrid adjustable rate mortgages

536 words·~2 min read·/usc/title-15/section-1638a

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Hybrid adjustable rate mortgages defined For purposes of this section, the term “hybrid adjustable rate mortgage” means a consumer credit transaction secured by the consumer’s principal residence with a fixed interest rate for an introductory period that adjusts or resets to a variable interest rate after such period.

(b)Notice of reset and alternatives During the 1-month period that ends 6 months before the date on which the interest rate in effect during the introductory period of a hybrid adjustable rate mortgage adjusts or resets to a variable interest rate or, in the case of such an adjustment or resetting that occurs within the first 6 months after consummation of such loan, at consummation, the creditor or servicer of such loan shall provide a written notice, separate and distinct from all other correspondence to the consumer, that includes the following:

(1)Any index or formula used in making adjustments to or resetting the interest rate and a source of information about the index or formula.

(2)An explanation of how the new interest rate and payment would be determined, including an explanation of how the index was adjusted, such as by the addition of a margin.

(3)A good faith estimate, based on accepted industry standards, of the creditor or servicer of the amount of the monthly payment that will apply after the date of the adjustment or reset, and the assumptions on which this estimate is based.

(4)A list of alternatives consumers may pursue before the date of adjustment or reset, and descriptions of the actions consumers must take to pursue these alternatives, including—

(A)refinancing;

(B)renegotiation of loan terms;

(C)payment forbearances; and

(D)pre-foreclosure sales.

(5)The names, addresses, telephone numbers, and Internet addresses of counseling agencies or programs reasonably available to the consumer that have been certified or approved and made publicly available by the Secretary of Housing and Urban Development or a State housing finance authority (as defined in section 1441a–1 of title 12).

(6)The address, telephone number, and Internet address for the State housing finance authority (as so defined) for the State in which the consumer resides.

(c)Savings clause The Board may require the notice in paragraph

(b)or other notice consistent with this chapter for adjustable rate mortgage loans that are not hybrid adjustable rate mortgage loans.

(Pub. L. 90–321, title I, § 128A, as added Pub. L. 111–203, title XIV, § 1418(a), July 21, 2010, 124 Stat. 2153.)

Connections4 cite this · traces to 2

Cited by 4 sections

statutes-at-large

Public Law 111–203
To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end “too big to fail”, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes

Traces to 2 documents

U.S. Code

6 references not yet in our index

Pub. L. 90–321, title I, § 128A
Pub. L. 111–203, title XIV, § 1418(a)
124 Stat. 2153
Pub. L. 90–321
82 Stat. 146
section 1400(c) of Pub. L. 111–203

Citation graph

cites case law

§ 1638a

Reset of hybrid adjustable rate mortgages

Fed. Reg.×3

Stat.×1

U.S.C.§ 1441a

U.S.C.§ 1601

Pub. L.Pub. L. 90–321, title I, § 128A

Pub. L.Pub. L. 111–203, title XIV, § 1418(a)

Stat.124 Stat. 2153

Pub. L.Pub. L. 90–321

Stat.82 Stat. 146

Cites 8 · showing 7Cited by 4 across 2 sources