source:
  type: regulation
  id: va-38usc-3707
  authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3707 — Adjustable rate mortgages
  description: 'VA Home Loan Guaranty (38 U.S.C. ch. 37), §3707 Adjustable rate mortgages. Captured section-complete
    from Cornell LII (verbatim).

    '
obligations:
- id: va-38usc-3707-a
  canonical_id: va-38usc-3707-a
  section: 38 U.S.C. §3707(a)
  description: 'Adjustable rate mortgages — (a): (a) The Secretary shall carry out a project under this section
    for the purpose of guaranteeing loans in a manner similar to the manner in which the Secretary of Housing and
    Urban Development insures adjustable rate mortgages under section 251 of the National Housing Act .'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3707
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3707
    snapshot_id: a933b90a54beebac
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:34afb9261321b20d4303e75108bdb4aea20b91b8c5338c064c39efdfb1596358
    paragraph_quote: (a) The Secretary shall carry out a project under this section for the purpose of guaranteeing
      loans in a manner similar to the manner in which the Secretary of Housing and Urban Development insures adjustable
      rate mortgages under section 251 of the National Housing Act .
    drafter_attestation: Verbatim slice of 38 U.S.C. §3707 subsection (a) from Cornell LII snapshot a933b90a54beebac;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3707-b
  canonical_id: va-38usc-3707-b
  section: 38 U.S.C. §3707(b)
  description: 'Adjustable rate mortgages — (b): (b) Interest rate adjustment provisions of a mortgage guaranteed
    under this section shall— (1) correspond to a specified national interest rate index approved by the Secretary,
    information on which is readily accessible to mortgagors from generally available published sources; (2) be
    made by adjusti…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3707
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3707
    snapshot_id: a933b90a54beebac
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:34afb9261321b20d4303e75108bdb4aea20b91b8c5338c064c39efdfb1596358
    paragraph_quote: (b) Interest rate adjustment provisions of a mortgage guaranteed under this section shall—
      (1) correspond to a specified national interest rate index approved by the Secretary, information on which
      is readily accessible to mortgagors from generally available published sources; (2) be made by adjusting the
      monthly payment on an annual basis; (3) be limited, with respect to any single annual interest rate adjustment,
      to a maximum increase or decrease of 1 percentage point; and (4) be limited, over the term of the mortgage,
      to a maximum increase of 5 percentage points above the initial contract interest rate.
    drafter_attestation: Verbatim slice of 38 U.S.C. §3707 subsection (b) from Cornell LII snapshot a933b90a54beebac;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3707-c
  canonical_id: va-38usc-3707-c
  section: 38 U.S.C. §3707(c)
  description: 'Adjustable rate mortgages — (c): (c) The Secretary shall promulgate underwriting standards for loans
    guaranteed under this section, taking into account— (1) the status of the interest rate index referred to in
    subsection (b)(1) and available at the time an underwriting decision is made, regardless of the actual initial
    rate offered…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3707
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3707
    snapshot_id: a933b90a54beebac
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:34afb9261321b20d4303e75108bdb4aea20b91b8c5338c064c39efdfb1596358
    paragraph_quote: (c) The Secretary shall promulgate underwriting standards for loans guaranteed under this section,
      taking into account— (1) the status of the interest rate index referred to in subsection (b)(1) and available
      at the time an underwriting decision is made, regardless of the actual initial rate offered by the lender;
      (2) the maximum and likely amounts of increases in mortgage payments that the loans would require; (3) the
      underwriting standards applicable to adjustable rate mortgages insured under title II of the National Housing
      Act ; and (4) such other factors as the Secretary finds appropriate.
    drafter_attestation: Verbatim slice of 38 U.S.C. §3707 subsection (c) from Cornell LII snapshot a933b90a54beebac;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3707-d
  canonical_id: va-38usc-3707-d
  section: 38 U.S.C. §3707(d)
  description: 'Adjustable rate mortgages — (d): (d) The Secretary shall require that the mortgagee make available
    to the mortgagor, at the time of loan application, a written explanation of the features of the adjustable rate
    mortgage, including a hypothetical payment schedule that displays the maximum potential increases in monthly
    payments to t…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3707
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3707
    snapshot_id: a933b90a54beebac
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:34afb9261321b20d4303e75108bdb4aea20b91b8c5338c064c39efdfb1596358
    paragraph_quote: (d) The Secretary shall require that the mortgagee make available to the mortgagor, at the
      time of loan application, a written explanation of the features of the adjustable rate mortgage, including
      a hypothetical payment schedule that displays the maximum potential increases in monthly payments to the mortgagor
      over the first five years of the mortgage term. (Added Pub. L. 102–547, § 3(a)(1) , Oct. 28, 1992 , 106 Stat.
      3634 ; amended Pub. L. 103–78, § 7 , Aug. 13, 1993 , 107 Stat. 769 ; Pub. L. 108–454, title IV, § 404 , Dec.
      10, 2004 , 118 Stat. 3616 ; Pub. L. 110–389, title V, § 505(a) , Oct. 10, 2008 , 122 Stat. 4176 ; Pub. L.
      112–154, title II, § 208 , Aug. 6, 2012 , 126 Stat. 1179 .)
    drafter_attestation: Verbatim slice of 38 U.S.C. §3707 subsection (d) from Cornell LII snapshot a933b90a54beebac;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
