Adjustable Rate Mortgage Law and Legal Definition

According to 12 USCS § 4901 (1) [Title 12. Banks and Banking; Chapter 49. Homeowners Protection] the term adjustable rate mortgage means “a residential mortgage that has an interest rate that is subject to change. A residential mortgage that: (A) does not fully amortize over the term of the obligation; and (B) contains a conditional right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable rate mortgage for purposes of this Act.”