Department of Housing and Urban Development March 29, 2005 – Federal Register Recent Federal Regulation Documents

Eligibility of Adjustable Rate Mortgages
Document Number: 05-6061
Type: Rule
Date: 2005-03-29
Agency: Department of Housing and Urban Development
This rule makes available a new adjustable rate mortgage (ARM) product. In accordance with statutory authority, this rule enables the Secretary to insure five-year hybrid ARMs with interest rates adjustable up to two percentage points annually (this type of mortgage is known as a 5/1 ARM). The lifetime cap on annual interest rate adjustments for five-year ARMs is set at six percentage points.