§ 3803. — Alternative mortgage authority.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3803]
TITLE 12--BANKS AND BANKING
CHAPTER 39--ALTERNATIVE MORTGAGE TRANSACTIONS
Sec. 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 enforcing alternative
mortgage transactions, housing creditors may make, purchase, and enforce
alternative mortgage transactions, except that this section shall
apply--
(1) with respect to banks, only to transactions made 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;
(2) with respect to credit unions, only to transactions made 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; and
(3) with respect to all other housing creditors, including
without limitation, savings and loan associations, mutual savings
banks, and savings banks, only to transactions made in accordance
with regulations governing alternative mortgage transactions as
issued by the Director of the Office of Thrift Supervision for
federally chartered 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.
(b) Transactions deemed in compliance with applicable regulations
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 regulation, if--
(1) the transaction is in substantial compliance with the
regulation; and
(2) within sixty days of discovering any error, the housing
creditor corrects such error, including making appropriate
adjustments, if any, to the account.
(c) Preemption of State constitutions, laws or regulations
An alternative mortgage transaction may be made by a housing
creditor in accordance with this section, notwithstanding any State
constitution, law, or regulation.
(Pub. L. 97-320, title VIII, Sec. 804, Oct. 15, 1982, 96 Stat. 1546;
Pub. L. 101-73, title VII, Sec. 744(c), Aug. 9, 1989, 103 Stat. 438.)
Amendments
1989--Subsec. (a)(3). Pub. L. 101-73 substituted ``Director of the
Office of Thrift Supervision'' for ``Federal Home Loan Bank Board''
wherever appearing.
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.
Section Referred to in Other Sections
This section is referred to in sections 1715z-20, 3804 of this
title.
