124 STAT. 2154 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘§ 128A. Reset of hybrid adjustable rate mortgages ‘‘(a) HYBRID ADJUSTABLE RATE MORTGAGES DEFINED.—For pur- poses of this section, the term ‘hybrid adjustable rate mortgage’ means a consumer credit transaction secured by the consumer’s principal residence with a fixed interest rate for an introductory period that adjusts or resets to a variable interest rate after such period. ‘‘(b) NOTICE OF RESET AND ALTERNATIVES.—During the 1-month period that ends 6 months before the date on which the interest rate in effect during the introductory period of a hybrid adjustable rate mortgage adjusts or resets to a variable interest rate or, in the case of such an adjustment or resetting that occurs within the first 6 months after consummation of such loan, at consumma- tion, the creditor or servicer of such loan shall provide a written notice, separate and distinct from all other correspondence to the consumer, that includes the following: ‘‘(1) Any index or formula used in making adjustments to or resetting the interest rate and a source of information about the index or formula. ‘‘(2) An explanation of how the new interest rate and pay- ment would be determined, including an explanation of how the index was adjusted, such as by the addition of a margin. ‘‘(3) A good faith estimate, based on accepted industry standards, of the creditor or servicer of the amount of the monthly payment that will apply after the date of the adjust- ment or reset, and the assumptions on which this estimate is based. ‘‘(4) A list of alternatives consumers may pursue before the date of adjustment or reset, and descriptions of the actions consumers must take to pursue these alternatives, including— ‘‘(A) refinancing; ‘‘(B) renegotiation of loan terms; ‘‘(C) payment forbearances; and ‘‘(D) pre-foreclosure sales. ‘‘(5) The names, addresses, telephone numbers, and Inter- net addresses of counseling agencies or programs reasonably available to the consumer that have been certified or approved and made publicly available by the Secretary of Housing and Urban Development or a State housing finance authority (as defined in section 1301 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989). ‘‘(6) The address, telephone number, and Internet address for the State housing finance authority (as so defined) for the State in which the consumer resides. ‘‘(c) SAVINGS CLAUSE.—The Board may require the notice in paragraph (b) or other notice consistent with this Act for adjustable rate mortgage loans that are not hybrid adjustable rate mortgage loans.’’. (b) CLERICAL AMENDMENT.—The table of sections for chapter 2 of the Truth in Lending Act is amended by inserting after the item relating to section 128 the following new item: ‘‘128A. Reset of hybrid adjustable rate mortgages.’’. SEC. 1419. REQUIRED DISCLOSURES. Section 128(a) of Truth in Lending Act (15 U.S.C. 1638(a)) is amended by adding at the end the following new paragraphs: Time period. 15 USC 1638a.
