American Dream Act

American Dream Act - Amends the Home Owners' Loan Act of 1933 to authorize the Home Loan Bank Board to permit Federal savings and loan associations to offer graduated payment and reverse-annuity mortgages.

Requires provisions in any reverse-annuity mortgage to protect the mortgagor from loss of the property involved in the event funds available under such annuity are depleted. Directs each savings and loan association to offer a fixed-rate mortgage along with the offer to extend a graduated-payment or reserve-annuity mortgage and to make a comparison of the terms of such instruments. Stipulates that any graduated-payment mortgage must provide the mortgagor with an option to convert such mortgage to a fixed-rate mortgage. Prohibits any annual increase in the payment due under a graduated-payment mortgage from exceeding seven-and-one-half percent of the total payment during the preceding year.

Prohibits any savings and loan association from investing in any variable-rate or rollover mortgage after January 1, 1979. Grants any individual who received such a mortgage after such date the option to convert it to a fixed-rate mortgage bearing interest at the rate available when the alternative instrument was received or at the prevailing rate on the date of enactment, whichever is lower.

Exempts any director from criminal penalties for violation of an order from the Board with respect to variable rate or rollover mortgages between January 1, 1979, and the date of enactment of this Act.