Page:United States Statutes at Large Volume 101 Part 1.djvu/692

 101 STAT. 662

PUBLIC LAW 100-86—AUG. 10, 1987

ing, and Urban Affairs of the Senate, a report containing the findings and conclusions of the Board with respect to the study required under subsection (a), including— (1) the findings and conclusions of the Board concerning the i losses to the insurance fund and the degree to which such losses were the result of direct investment activities with respect to each of the classes of institutions described in subsection (a); and (2) a comparison of the effects of direct investment activities prior to April 16, 1987, and the effect of such activities on or ' after April 16, 1987, for each of the classes of institutions • described in subsection (a) and the losses to the insurance fund as a result of such activities. (c) PRIOR REPORTS TO CONGRESS ON CHANGES TO DIRECT INVESTMENT REGULATIONS.—

(1) IN GENERAL.—Not less than 90 days before final approval is given by the Federal Home Loan Bank Board to any regulation which repeals or modifies (or has the effect of repealing or modifying) any regulation limiting direct investment activities, the Board shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report describing the proposed regulation and the reasons for the proposed regulation, including the effect of such regulation on the insurance fund. (2) PROSPECTIVE APPLICATION OF RULE.—Paragraph (1) shall " not apply with respect to Board Resolution Numbered 87-215 and Board Resolution Numbered 87-215A. (d) DIRECT INVESTMENT ACTIVITY DEFINED.—For purposes of this section, the term "direct investment activities" means activities which are limited under Board Resolution Numbered 87-215 and Board Resolution Numbered 87-215A. 12 USC 3806.

15 USC 1601 note. 15 USC 1640

SEC. 1204. ADJUSTABLE RATE MORTGAGE CAPS.

(a) IN GENERAL.—Any adjustable rate mortgage loan originated by a creditor shall include a limitation on the maximum interest rate that may apply during the term of the mortgage loan. (b) REGULATIONS.—The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section. (c) ENFORCEMENT.—Any violation of this section shall be treated as a violation of the Truth in Lending Act and shall be subject to administrative enforcement under section 108 or civil damages under section 130 of such Act, or both. (d) DEFINITIONS.—For the purpose of this section— (1) the term "creditor" means a person who regularly extends credit for personal, family, or household purposes; and (2) the term "adjustable rate mortgage loan" means any loan secured by a lien on a one- to four-family dwelling unit, including a condominium unit, cooperative housing unit, or mobile home, where the loan is made pursuant to an agreement under which the creditor may, from time to time, adjust the rate of interest. (e) EFFECTIVE DATE.—This section shall take effect upon the expiration of 120 days after the date of enactment of this Act.

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