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15 U.S.C. § 1638a — Reset of hybrid adjustable rate mortgages
Federal law — U.S. Code and appendices · legal_authorities
**(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
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Stable record: federal_law:legal_authorities:record_usc_051080d55d36a8b0f8be80f6
Source file: Laws/federal/codes/united-states-code/title-15/section-1638a-reset-of-hybrid-adjustable-rate-mortgages--7194e500d2.md
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Source location: Title 15, Chapter 41, § 1638a; chapter-041-consumer-credit-protection.md
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**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441a–1&num=0&edition=prelim)).
(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.
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Federal law — U.S. Code and appendices · legal_authorities
For purposes of [section 1441a–2 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441a-2&num=0&edition=prelim):
(1) **State housing finance authority** — The term “State housing finance authority” means any public agency, authority, or corporation which—
(A) serves as an instrumentality of any State or any political subdivision of any State; and
(B) functions as a source of residential mortgage loan financing in that State.
(2) **Nonprofit entity** — The term “nonprofit entity” means any not-for-profit corporation chartered under State law that is exempt from Federal taxation under [section 501(c) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section501/c&num=0&edition=prelim) and no part of the net earnings of which inures to the benefit of any member, founder, contributor, or individual (including any nonprofit entity established by the corporation established under title IX of the Housing and Urban Development Act of 1968 [[42 U.S.C. 3931](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section3931&num=0&edition=prelim) et seq.]).
(3) **Mortgage-related assets** — The term “mortgage-related assets” means—
(A) residential mortgage loans secured by 1- to 4-family or multifamily dwellings; and
(B) real property improved with 1- to 4-family or multifamily residential dwellings,
which are located within the jurisdiction of the applicable State housing finance authority or within the geographical area served by the nonprofit entity.
(4) **Net income** — The term “net income” means income after deduction of all associated expenses calculated in accordance with generally accepted accounting principles.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1441a–1
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Informed use of credit** The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices.
**(b) Terms of personal property leases** The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an alternative to installment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this subchapter to assure a meaningful disclosure of the terms of leases of personal property for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 1601
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Federal law — U.S. Code and appendices · legal_authorities
Page 1502
TITLE 15—COMMERCE AND TRADE
§ 1638a
1 See References in Text note below.
commenced under Title 11, Bankruptcy, before such ef-
fective date, except as otherwise provided, see section
1501 of Pub. L. 109–8, set out as a note under section 101
of Title 11.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–221 effective on expiration
of two years and six months after Mar. 31, 1980, with all
regulations, forms, and clauses required to be pre-
scribed to be promulgated at least one year prior to
such effective date, and allowing any creditor to com-
ply with any amendments, in accordance with the regu-
lations, forms, and clauses prescribed by the Board
prior to such effective date, see section 625 of Pub. L.
96–221, set out as a note under section 1602 of this title.
REGULATIONS
Pub. L. 110–315, title X, § 1002, Aug. 14, 2008, 122 Stat.
3478, provided that: ‘‘Not later than 365 days after the
date of enactment of this Act [Aug. 14, 2008], the Board
of Governors of the Federal Reserve System shall issue
regulations in final form to implement paragraphs (1),
(2), (3), (4), (6), (7), and (8) of section 128(e) [15 U.S.C.
1638(e)] and section 140(c) of the Truth in Lending Act
[15 U.S.C. 1650(c)], as added by this title, which regula-
tions shall become effective not later than 6 months
after their date of issuance.’’
§ 1638a. Reset of hybrid adjustable rate mort-
gages
(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
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 1638a
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