15 U.S.C. § 1638a — Reset of hybrid adjustable rate mort-

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 the 1-month period that ends 6 months before the date on which the interest rate in ef- fect 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, sepa- rate and distinct from all other correspondence to the consumer, that includes the following: (1) Any index or formula used in making ad- justments to or resetting the interest rate and a source of information about the index or for- mula. (2) An explanation of how the new interest rate and payment would be determined, in- cluding 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 esti- mate is based. (4) A list of alternatives consumers may pur- sue 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 num- bers, and Internet addresses of counseling agencies or programs reasonably available to the consumer that have been certified or ap- proved and made publicly available by the Secretary of Housing and Urban Development or a State housing finance authority (as de- fined 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 para- graph (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.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (c), was in the original ‘‘this Act’’ meaning Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the date on which final regula- tions implementing such section take effect, or on the date that is 18 months after the designated transfer date, if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 1601 of this title. § 1639. Requirements for certain mortgages (a) Disclosures (1) Specific disclosures In addition to other disclosures required under this subchapter, for each mortgage re- ferred to in section 1602(aa) 1 of this title, the creditor shall provide the following disclosures in conspicuous type size: (A) ‘‘You are not required to complete this agreement merely because you have received these disclosures or have signed a loan appli- cation.’’. (B) ‘‘If you obtain this loan, the lender will have a mortgage on your home. You could lose your home, and any money you have put into it, if you do not meet your obliga- tions under the loan.’’. (2) Annual percentage rate In addition to the disclosures required under paragraph (1), the creditor shall disclose— (A) in the case of a credit transaction with a fixed rate of interest, the annual percent- age rate and the amount of the regular monthly payment; or (B) in the case of any other credit trans- action, the annual percentage rate of the loan, the amount of the regular monthly payment, a statement that the interest rate