12 U.S.C. § 3806: Adjustable rate mortgage caps

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. The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section. Any violation of this section shall be treated as a violation of the Truth in Lending Act [ 15 U.S.C. 1601 et seq.] and shall be subject to administrative enforcement under section 108 [ 15 U.S.C. 1607 ] or civil damages under section 130 [ 15 U.S.C. 1640 ] of such Act, or both. the term “creditor” means a person who regularly extends credit for personal, family, or household purposes; and the term “adjustable rate mortgage loan” means any consumer 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. This section shall take effect upon the expiration of 120 days after August 10, 1987 .