<num style="-uslm-dtd:enum" value="VIII">TITLE VIII—</num><heading style="-uslm-dtd:header">ALTERNATIVE MORTGAGE TRANSACTIONS<ref style="-uslm-dtd:footnote-ref" idref="IDC247C4125E9340D6BD5A842E0F38BF55" class="footnoteRef">1</ref> </heading> <section style="-uslm-dtd:section" identifier="/us/sComp/97/320/tVIII/s801" styleType="traditional"> <heading style="-uslm-dtd:header">short title </heading> <num style="-uslm-dtd:enum" value="801">Sec. 801. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t12/s3801">12 U.S.C. 3801 note</ref><b>]</b> </editorialNote><content style="-uslm-dtd:text">This title may be cited as the “<shortTitle style="-uslm-dtd:quote"><inline style="-uslm-dtd:short-title">Alternative Mortgage Transaction Parity Act of 1982</inline></shortTitle>”.</content><footnote id="IDC247C4125E9340D6BD5A842E0F38BF55" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">1</sup><p style="-uslm-dtd:para; margin-left:1em">The Alternative Mortgage Transaction Parity Act of 1982 was enacted as title VIII of the Garn-St Germain Depository Institutions Act of 1982.</p></footnote> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/97/320/tVIII/s802" styleType="traditional"> <heading style="-uslm-dtd:header">findings and purpose. </heading> <num style="-uslm-dtd:enum" value="802">Sec. 802. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t12/s3801">12 U.S.C. 3801</ref><b>]</b> </editorialNote><subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s802/a" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="a">(a) </num><chapeau style="-uslm-dtd:text">The Congress hereby finds that—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s802/a/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">increasingly volatile and dynamic changes in interest rates have seriously 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;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s802/a/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">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</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s802/a/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">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.</content> </paragraph></subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s802/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><content style="-uslm-dtd:text">It is the purpose of this title 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.</content> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/97/320/tVIII/s803" styleType="traditional" role="definitions"> <heading style="-uslm-dtd:header">definitions </heading> <num style="-uslm-dtd:enum" value="803">Sec. 803. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t12/s3802">12 U.S.C. 3802</ref><b>]</b> </editorialNote><chapeau style="-uslm-dtd:text">As used in this title—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s803/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">the term “<term style="-uslm-dtd:term">alternative mortgage transaction</term>” means a loan or credit sale secured by an interest in residential real property, a dwelling, all stock allocated to a dwelling unit in a residential cooperative housing corporation, or a residential manufactured home (as that term is defined in section 603(6) of the National Manufactured Home Construction and Safety Standards Act of 1974), in which the interest rate or finance charge may be adjusted or renegotiated, described and defined by applicable regulation; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s803/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><chapeau style="-uslm-dtd:text">the term “<term style="-uslm-dtd:term">housing creditor</term>” means—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/97/320/tVIII/s803/2/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">a depository institution, as defined in section 501(a)(2) of the Depository Institutions Deregulation and Monetary Control Act of 1980;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/97/320/tVIII/s803/2/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">a lender approved by the Secretary of Housing and Urban Development for participation in any mortgage insurance program under the National Housing Act;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/97/320/tVIII/s803/2/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">any person who regularly makes loans, credit sales, or advances secured by interests in properties referred to in paragraph (1); or</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/97/320/tVIII/s803/2/D" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">any transferee of any of them.</content> </subparagraph><continuation style="-uslm-dtd:continuation-text" role="paragraph">A person is not a “<term style="-uslm-dtd:quote">housing creditor</term>” with respect to a specific alternative mortgage transaction if, except for this title, in order to enter into that transaction, the person would be required to comply with licensing requirements imposed under State law, unless such person is licensed under applicable State law and such person remains, or becomes, subject to the applicable regulatory requirements and enforcement mechanisms provided by State law.</continuation> </paragraph> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/97/320/tVIII/s804" styleType="traditional"> <heading style="-uslm-dtd:header">alternative mortgage authority. </heading> <num style="-uslm-dtd:enum" value="804">Sec. 804. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t12/s3803">12 U.S.C. 3803</ref><b>]</b> </editorialNote><subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s804/a" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="a">(a) </num><chapeau style="-uslm-dtd:text">In order to prevent discrimination against State-chartered depository institutions, and other nonfederally chartered housing creditors, with respect to making, purchasing, and enforcing alternative mortgage transactions, housing creditors may make, purchase, and enforce alternative mortgage transactions, except that this section shall apply—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/a/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">with respect to banks, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010 in accordance with regulations governing alternative mortgage transactions as issued by the Comptroller of the Currency for national banks, to the extent that such regulations are authorized by rulemaking authority granted to the Comptroller of the Currency with regard to national banks under laws other than this section;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/a/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">with respect to credit unions, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010 in accordance with regulations governing alternative mortgage transactions as issued by the National Credit Union Administration Board for Federal credit unions, to the extent that such regulations are authorized by rulemaking authority granted to the National Credit Union Administration with regard to Federal credit unions under laws other than this section;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/a/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">with respect to all other housing creditors, including without limitation, savings and loan associations, mutual savings banks, and savings banks, only to transactions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010, in accordance with regulations governing alternative mortgage transactions as issued by the Director of the Office of Thrift Supervision for federally charter savings and loan associations, to the extent that such regulations are authorized by rulemaking authority granted to the Director of the Office of Thrift Supervision with regard to federally chartered savings and loan associations under laws other than this section; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/a/4" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">(4) </num><content style="-uslm-dtd:text">with respect to transactions made after the designated transfer date, only in accordance with regulations governing alternative mortgage transactions, as issued by the Bureau of Consumer Financial Protection for federally chartered housing creditors, in accordance with the rulemaking authority granted to the Bureau of Consumer Financial Protection with regard to federally chartered housing creditors under provisions of law other than this section.</content> </paragraph></subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s804/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><chapeau style="-uslm-dtd:text">For the purpose of determining the applicability of this section, an alternative mortgage transaction shall be deemed to be made in accordance with the applicable regulation notwithstanding the housing creditor's failure to comply with the regulations, if—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/b/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">the transaction is in substantial compliance with the regulation; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/b/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">within 60 days of discovering any error, the housing credit correct such error, including making appropriate adjustments, if any, to the account.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s804/c" styleType="OLC"> <num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Preemption of State Law.—</heading><content style="-uslm-dtd:text">An alternative mortgage transaction may be made by a housing creditor in accordance with this section, notwithstanding any State constitution, law, or regulation that prohibits an alternative mortgage transaction. For purposes of this subsection, a State constitution, law, or regulation that prohibits an alternative mortgage transaction does not include any State constitution, law, or regulation that regulates mortgage transactions generally, including any restriction on prepayment penalties or late charges.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s804/d" styleType="OLC"> <num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header">Bureau Actions.—</heading><chapeau style="-uslm-dtd:text">The Bureau of Consumer Financial Protection shall—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/d/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">review the regulations identified by the Comptroller of the Currency and the National Credit Union Administration, (as those rules exist on the designated transfer date), as applicable under paragraphs (1) through (3) of subsection (a);</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/d/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">determine whether such regulations are fair and not deceptive and otherwise meet the objectives of the Consumer Financial Protection Act of 2010; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s804/d/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">promulgate regulations under subsection (a)(4) after the designated transfer date.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s804/e" styleType="OLC"> <num style="-uslm-dtd:enum" value="e">(e) </num><heading style="-uslm-dtd:header">Designated Transfer Date.—</heading><content style="-uslm-dtd:text">As used in this section, the term “<term style="-uslm-dtd:term">designated transfer date</term>” means the date determined under section 1062 of the Consumer Financial Protection Act of 2010.</content> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/97/320/tVIII/s805" styleType="traditional"> <heading style="-uslm-dtd:header">applicability </heading> <num style="-uslm-dtd:enum" value="805">Sec. 805. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t12/s3804">12 U.S.C. 3804</ref><b>]</b> </editorialNote><subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s805/a" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="a">(a) </num><chapeau style="-uslm-dtd:text">The provisions of section 804 shall not apply to any alternative mortgage transaction in any State made on or after the effective date (if such effective date occurs on or after the effective date of this title and prior to a date 3 years after the effective date of this title) of a State law or a certification that the voters of such State have voted in favor of any provision, constitutional or otherwise, which states explicitly and by its terms that such State does not want the preemption provided in section 804 to apply with respect to alternative mortgage transactions (or to any class or type of alternative mortgage transaction) subject to the laws of such State, except that section 804 shall continue to apply to—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s805/a/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">any alternative mortgage transaction undertaken on or after such date pursuant to an agreement to undertake such alternative mortgage transaction which was entered into on or after the effective date of this title and prior to such later date (the “<quotedText style="-uslm-dtd:quote">preemption period</quotedText>”); and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s805/a/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">any renewal, extension, refinancing, or other modification of an alternative mortgage transaction that was entered into during the preemption period.</content> </paragraph></subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s805/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><chapeau style="-uslm-dtd:text">An alternative mortgage transaction shall be deemed to have been undertaken during the preemption period to which this section applied if it—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s805/b/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">is funded or extended in whole or in part during the preemption period, regardless of whether pursuant to a commitment or other agreement therefor made prior to that period; or</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/97/320/tVIII/s805/b/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">is a renewal, extension, refinancing, or other modification of an alternative mortgage transaction entered into before the preemption period and such renewal, extension, or other modification is made during such period with the written consent of any person obligated to repay such credit.</content> </paragraph> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/97/320/tVIII/s806" styleType="traditional"> <heading style="-uslm-dtd:header">relation to other law </heading> <num style="-uslm-dtd:enum" value="806">Sec. 806. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t12/s3805">12 U.S.C. 3805</ref><b>]</b> </editorialNote><content style="-uslm-dtd:text">Section 501(c)(1) of the Depository Institutions Deregulation and Monetary Control Act of 1980 shall not apply to transactions which are subject to this title.</content> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/97/320/tVIII/s807" styleType="traditional"> <heading style="-uslm-dtd:header">effective date </heading> <num style="-uslm-dtd:enum" value="807">Sec. 807. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t12/s3801">12 U.S.C. 3801 note</ref><b>]</b> </editorialNote><subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s807/a" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="a">(a) </num><content style="-uslm-dtd:text">This title shall be effective upon enactment.</content></subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/97/320/tVIII/s807/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><content style="-uslm-dtd:text">Within 60 days of the enactment of this title, the Comptroller of the Currency, the National Credit Union Administration, and the Federal Home Loan Bank Board shall identify, describe, 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.</content> </subsection> </section>