Section 28-15-11-12 - Regulation of graduated payment mortgage loans(a) Graduated payment mortgage (GPM) loans are subject to the following: (1) Interest only may be paid for five (5) years, or increases in mortgage payments may be made for periods of not more than ten (10) years within the following maximum rates of increase: (A) Seven and one-half percent (7.5%) annually for five (5) years or less.(B) Six and one-half percent (6.5%) annually for six (6) years.(C) Five and one-half percent (5.5%) annually for seven (7) years.(D) Four and one-half percent (4.5%) annually for eight (8) years.(E) Three and one-half percent (3.5%) annually for nine (9) years.(F) Three percent (3%) annually for ten (10) years.(2) Payment amounts may be changed annually only after one (1) year following the first regular loan payment.(b) The borrower may convert a GPM loan into a standard mortgage loan with the same interest rate and maturity if the borrower is qualified under the normal underwriting standards of the savings association. A savings association may not assess penalties for any conversion.As added by P.L. 193-1997, SEC.2.