§3801 — Title 12 Banks and Banking | U.S. Code

Summary

Allows all housing creditors to make, buy, and enforce alternative mortgage loans as long as they follow the rules set by the federal agencies. Congress found that big swings in interest rates made it hard for lenders to offer fixed-term, fixed-rate home loans, that alternative mortgages were needed to meet 1980s demand, and that three federal agencies (Comptroller of the Currency, National Credit Union Administration, and the Director of the Office of Thrift Supervision) already let federally chartered lenders use these mortgages. The law gives nonfederal lenders the same treatment.

Title 12, §3801

Banks and Banking — Source: USLM XML via OLRC

(a)The Congress hereby finds that—

(1)increasingly volatile and dynamic changes in interest rates have seriously impared 11 So in original. Probably should be “impaired”. the ability of housing creditors to provide consumers with fixed-term, fixed-rate credit secured by interests in real property, cooperative housing, manufactured homes, and other dwellings;

(2)alternative mortgage transactions are essential to the provision of an adequate supply of credit secured by residential property necessary to meet the demand expected during the 1980’s; and

(3)the Comptroller of the Currency, the National Credit Union Administration, and the Director of the Office of Thrift Supervision have recognized the importance of alternative mortgage transactions and have adopted regulations authorizing federally chartered depository institutions to engage in alternative mortgage financing.

(b)It is the purpose of this chapter to eliminate the discriminatory impact that those regulations have upon nonfederally chartered housing creditors and provide them with parity with federally chartered institutions by authorizing all housing creditors to make, purchase, and enforce alternative mortgage transactions so long as the transactions are in conformity with the regulations issued by the Federal agencies.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1989—Subsec. (a)(3). Pub. L. 101–73 substituted “Director of the Office of Thrift Supervision” for “Federal Home Loan Bank Board”.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 97–320, title VIII, § 807(a), Oct. 15, 1982, 96 Stat. 1548, provided that: “This title [enacting this chapter] shall be effective upon enactment [Oct. 15, 1982].”

Short Title

Pub. L. 97–320, title VIII, § 801, Oct. 15, 1982, 96 Stat. 1545, provided that: “This title [enacting this chapter] may be cited as the ‘Alternative Mortgage Transaction Parity Act of 1982’.” Identification, Description and Publication of

Regulations

Inapplicable To, or Conformation of

Regulations

for Use Of Nonfederally Chartered Housing Creditors Pub. L. 97–320, title VIII, § 807(b), Oct. 15, 1982, 96 Stat. 1548, provided that: “Within sixty days of the enactment of this title [Oct. 15, 1982], the Comptroller of the Currency, the National Credit Union Administration, and the Federal Home Loan Bank Board shall identify, describe, and publish those portions or provisions of their respective

Regulations

that are inappropriate for (and thus inapplicable to), or that need to be conformed for the use of, the nonfederally chartered housing creditors to which their respective

Regulations

apply, including without limitation, making necessary changes in terminology to conform the regulatory and disclosure provisions to those more typically associated with various types of transactions including credit sales.”

§3801 Findings and purpose

Summary

Title 12, §3801

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Short Title

Regulations

Regulations

Regulations

Regulations

Citations & Metadata