Trying to help staff determine when they have to give new disclosures and when they don't when they have modifications.

If you have an existing ARM loan and you are modifying it, what types of changes are examples of the kinds where new disclosures would NOT be required?
Lowering rate?
Change in index that is comparable to the existing index?
Increasing/decreasing floor?

Anything else?

In reading 1026.19 and 1026.20 (plus commentary), seems to me a change in any one of the following on an ARM loan constitutes a change from the previously disclosed program, and would require new disclosures:

• Increase in rate
• Change in caps (i.e. going from 2/4 to 2/6)
• Increasing maturity and/or amortization (i.e. from 15 yr to 30 yr maturity and/or amortization)
• Adding a floor

Correct?

Anything that impacts a variable rate feature would be a trigger for new disclosures.

The commentary in 1026.20(a)-3 ii, implies that you can modify arm without triggering new disclosures...

"ii. Even if it [arm program change] is not accomplished by the cancellation of the old obligation and substitution of a new one, a new transaction subject to new disclosures results if the creditor either:
A. Increases the rate based on a variable-rate feature that was not previously disclosed; or
B. Adds a variable-rate feature to the obligation. A creditor does not add a variable-rate feature by changing the index of a variable-rate transaction to a comparable index, whether the change replaces the existing index or substitutes an index for one that no longer exists."


I would think that reducing a floor from 2% to 1% would not trigger new disclosures.

Am I just hoping for things that are not there?