§ 1715z–16.
(d)
Adjustable rate mortgage with initial fixed rate of interest
(1)
The Secretary may insure under this subsection a mortgage that meets the requirements of subsection (a), except that the effective rate of interest—
(A)
shall be fixed for a period of not less than the first 3 years of the mortgage term;
(B)
shall be adjusted by the mortgagee initially upon the expiration of such period and annually thereafter; and
(C)
in the case of the initial interest rate adjustment, is subject to the 1 percent limitation only if the interest rate remained fixed for 3 or fewer years.
(2)
The disclosure required under subsection (b) shall be required for a mortgage insured under this subsection.
([June 27, 1934, ch. 847], title II, § 251, as added [Pub. L. 98–181, title I] [title IV, § 443], Nov. 30, 1983, [97 Stat. 1225]; amended [Pub. L. 100–242, title IV, § 415(a)], Feb. 5, 1988, [101 Stat. 1907]; [Pub. L. 107–73, title II, § 206], Nov. 26, 2001, [115 Stat. 674]; [Pub. L. 108–186, title III, § 301(a)], Dec. 16, 2003, [117 Stat. 2692].)