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U.S. Code as of:
01/19/04
Section 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.
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