View all text of Subchapter II [§ 1707 - § 1715z-25]
§ 1715z–16. Adjustable rate single family mortgages
(a) One- to four-family dwellings; maximum term of mortgage; adjustments in effective rate of interest
(b) Written explanation of mortgage features
(c) Number of mortgages and loans
(d) Adjustable rate mortgage with initial fixed rate of interest
(1) The Secretary may insure under this subsection a mortgage that meets the requirements of subsection (a), except that the effective rate of interest—
(A) shall be fixed for a period of not less than the first 3 years of the mortgage term;
(B) shall be adjusted by the mortgagee initially upon the expiration of such period and annually thereafter; and
(C) in the case of the initial interest rate adjustment, is subject to the 1 percent limitation only if the interest rate remained fixed for 3 or fewer years.
(2) The disclosure required under subsection (b) shall be required for a mortgage insured under this subsection.
(June 27, 1934, ch. 847, title II, § 251, as added Pub. L. 98–181, title I [title IV, § 443], Nov. 30, 1983, 97 Stat. 1225; amended Pub. L. 100–242, title IV, § 415(a), Feb. 5, 1988, 101 Stat. 1907; Pub. L. 107–73, title II, § 206, Nov. 26, 2001, 115 Stat. 674; Pub. L. 108–186, title III, § 301(a), Dec. 16, 2003, 117 Stat. 2692.)