12 U.S.C. § 3801 — Findings and purpose

Page 1570 TITLE 12—BANKS AND BANKING § 3767 1 So in original. Probably should be ‘‘impaired’’. including the day or days on which the actions or events occur or are to occur for which the pe- riod of time is provided and including the day on which an event occurs or is to occur from which the period is to be calculated. (Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316.) Editorial Notes CODIFICATION Section is based on section 817 of title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327. § 3767. Severability If any part of this chapter shall, for any rea- son, be adjudged by a court of competent juris- diction to be invalid, or invalid as applied to a class of cases, such judgment shall not affect, impair, or invalidate the remainder thereof, and shall be confined in its operation to the part thereof directly involved in the controversy in which such judgment shall have been rendered. (Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316.) Editorial Notes CODIFICATION Section is based on section 818 of title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327. § 3768. Deficiency judgment (a) In general (1) Referral to Attorney General If after deducting the payments provided for in section 3762 of this title, the price at which the security property is sold at a foreclosure sale is less than the unpaid balance of the debt secured by the security property, resulting in a deficiency, the Secretary may refer the mat- ter to the Attorney General who may com- mence an action or actions against any or all debtors to recover the deficiency, unless such an action is specifically prohibited by the mortgage. (2) Other recoveries In any action instituted pursuant to this section the United States may recover— (A) any amount authorized by section 3011 of title 28; and (B) the costs of the action. (b) Limitation Any action commenced to recover a deficiency under this section must be brought not later than 6 years after the date of the last sale of the security property. (Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316.) Editorial Notes CODIFICATION Section is based on section 819 of title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327. CHAPTER 39—ALTERNATIVE MORTGAGE TRANSACTIONS Sec. 3801. Findings and purpose. 3802. Definitions. 3803. Alternative mortgage authority. 3804. Applicability of preemption provisions. 3805. Applicability of consumer protection provi- sions. 3806. Adjustable rate mortgage caps. § 3801. Findings and purpose (a) The Congress hereby finds that— (1) increasingly volatile and dynamic changes in interest rates have seriously impared 1 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 es- sential to the provision of an adequate supply of credit secured by residential property nec- essary to meet the demand expected during the 1980’s; and (3) the Comptroller of the Currency, the Na- tional Credit Union Administration, and the Director of the Office of Thrift Supervision have recognized the importance of alternative mortgage transactions and have adopted regu- lations authorizing federally chartered deposi- tory institutions to engage in alternative mortgage financing. (b) It is the purpose of this chapter to elimi- nate the discriminatory impact that those regu- lations have upon nonfederally chartered hous- ing creditors and provide them with parity with federally chartered institutions by authorizing all housing creditors to make, purchase, and en- force alternative mortgage transactions so long as the transactions are in conformity with the regulations issued by the Federal agencies. (Pub. L. 97–320, title VIII, § 802, Oct. 15, 1982, 96 Stat. 1545; Pub. L. 101–73, title VII, § 744(c), Aug. 9, 1989, 103 Stat. 438.) Editorial Notes AMENDMENTS 1989—Subsec. (a)(3). Pub. L. 101–73 substituted ‘‘Direc- tor 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 CHAR- TERED HOUSING CREDITORS Pub. L. 97–320, title VIII, § 807(b), Oct. 15, 1982, 96 Stat. 1548, provided that: ‘‘Within sixty days of the enact- Page 1571 TITLE 12—BANKS AND BANKING § 3803 ment 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 credi- tors to which their respective regulations apply, in- cluding without limitation, making necessary changes in terminology to conform the regulatory and disclo- sure provisions to those more typically associated with various types of transactions including credit sales.’’ § 3802. Definitions As used in this chapter— (1) the term ‘‘alternative mortgage trans- action’’ 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 corpora- tion, or a residential manufactured home (as that term is defined in section 5402(6) of title 42), in which the interest rate or finance charge may be adjusted or renegotiated, de- scribed and defined by applicable regulation; and (2) the term ‘‘housing creditor’’ means— (A) a depository institution, as defined in section 501(a)(2) of the Depository Institu- tions Deregulation and Monetary Control Act of 1980; (B) a lender approved by the Secretary of Housing and Urban Development for partici- pation in any mortgage insurance program under the National Housing Act [12 U.S.C. 1701 et seq.]; (C) any person who regularly makes loans, credit sales, or advances secured by interests in properties referred to in paragraph (1); or (D) any transferee of any of them. A person is not a ‘‘housing creditor’’ with re- spect to a specific alternative mortgage trans- action if, except for this chapter, in order to enter into that transaction, the person would be required to comply with licensing require- ments 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. (Pub. L. 97–320, title VIII, § 803, Oct. 15, 1982, 96 Stat. 1545; Pub. L. 111–203, title X, § 1083(a)(1), July 21, 2010, 124 Stat. 2080.) Editorial Notes REFERENCES IN TEXT Section 501(a)(2) of the Depository Institutions De- regulation and Monetary Control Act of 1980, referred to in par. (2)(A), is section 501(a)(2) of Pub. L. 96–221, title V, Mar. 31, 1980, 94 Stat. 161, which is set out as a note under section 1735f–7 of this title. The National Housing Act, referred to in par. (2)(B), is act June 27, 1934, ch. 847, 48 Stat. 1246, which is classi- fied principally to chapter 13 (§ 1701 et seq.) of this title. For complete classification of this Act to the Code, see section 1701 of this title and Tables. AMENDMENTS 2010—Par. (1). Pub. L. 111–203 substituted ‘‘section 5402(6) of title 42), in which the interest rate or finance charge may be adjusted or renegotiated, described and defined by applicable regulation; and’’ for ‘‘section 5402(6) of title 42)— ‘‘(A) in which the interest rate or finance charge may be adjusted or renegotiated; ‘‘(B) involving a fixed-rate, but which implicitly permits rate adjustments by having the debt mature at the end of an interval shorter than the term of the amortization schedule; or ‘‘(C) involving any similar type of rate, method of determining return, term, repayment, or other vari- ation not common to traditional fixed-rate, fixed- term transactions, including without limitation, transactions that involve the sharing of equity or ap- preciation; described and defined by applicable regulation; and’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–203, title X, § 1083(b), July 21, 2010, 124 Stat. 2081, provided that: ‘‘This section [amending this section and section 3803 of this title and enacting provi- sions set out as a note under this section] and the amendments made by this section shall become effec- tive on the designated transfer date.’’ [For definition of ‘‘designated transfer date’’, see sec- tion 5481 of this title.] EFFECTIVE DATE Section effective Oct. 15, 1982, see section 807(a) of Pub. L. 97–320, set out as a note under section 3801 of this title. CONSTRUCTION OF 2010 AMENDMENT Pub. L. 111–203, title X, § 1083(c), July 21, 2010, 124 Stat. 2081, provided that: ‘‘The amendments made by subsection (a) [amending this section and section 3803 of this title] shall not affect any transaction covered by the Alternative Mortgage Transaction Parity Act of l982 (12 U.S.C. 3801 et seq.) and entered into on or before the designated transfer date.’’ [For definition of ‘‘designated transfer date’’, see sec- tion 5481 of this title.] § 3803. Alternative mortgage authority (a) General authority; compliance by banks, credit unions and all other housing creditors with applicable regulations In order to prevent discrimination against State-chartered depository institutions, and other nonfederally chartered housing creditors, with respect to making, purchasing, and enforc- ing alternative mortgage transactions, housing creditors may make, purchase, and enforce al- ternative mortgage transactions, except that this section shall apply— (1) with respect to banks, only to trans- actions made on or before the designated transfer date, as determined under section 1062 of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5582], in accordance with regula- tions governing alternative mortgage trans- actions as issued by the Comptroller of the Currency for national banks, to the extent that such regulations are authorized by rule- making authority granted to the Comptroller of the Currency with regard to national banks under laws other than this section; (2) 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