As used in this chapter -
(1) the term "alternative mortgage transaction" means a loan or
credit sale secured by an interest in residential real property,
a dwelling, all stock allocated to a dwelling unit in a
residential cooperative housing corporation, or a residential
manufactured home (as that term is defined in section 5402(6) of
title 42 -
(A) in which the interest rate or finance charge may be
adjusted or renegotiated;
(B) involving a fixed-rate, but which implicitly permits rate
adjustments by having the debt mature at the end of an interval
shorter than the term of the amortization schedule; or
(C) involving any similar type of rate, method of determining
return, term, repayment, or other variation not common to
traditional fixed-rate, fixed-term transactions, including
without limitation, transactions that involve the sharing of
equity or appreciation;
described and defined by applicable regulation; and
(2) the term "housing creditor" means -
(A) a depository institution, as defined in section 501(a)(2)
of the Depository Institutions Deregulation and Monetary
Control Act of 1980;
(B) a lender approved by the Secretary of Housing and Urban
Development for participation in any mortgage insurance program
under the National Housing Act [12 U.S.C. 1701 et seq.];
(C) any person who regularly makes loans, credit sales, or
advances secured by interests in properties referred to in
paragraph (1); or
(D) any transferee of any of them.
A person is not a "housing creditor" with respect to a specific
alternative mortgage transaction if, except for this chapter, in
order to enter into that transaction, the person would be
required to comply with licensing requirements imposed under
State law, unless such person is licensed under applicable State
law and such person remains, or becomes, subject to the
applicable regulatory requirements and enforcement mechanisms
provided by State law.
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