Ok, I am having a brain cramp today. I am reviewing loan files and have found early ARM disclosures for 2nd mortgages on closed end products. The disclosures have the required regulatory elements, but the format is laid out like the open end model forms. No Fed box is used.

I am thinking as long as the required regulatory elements are disclosed we do not have a violation, but we also do not have safe harbor if there is a violation because we did not conform to the model forms.

Does anyone use disclosures where the format differs from the model forms?

It is not clear to me what disclosure you are referring to. Are you looking at the ARM program disclosure required by 226.19 or the "fed" box required by 226.18? The ARM disclosure doesn't need a "fed" box. The 226.18 disclosures must be segregated from other material and must be conspicuous. The "fed" box is the preferred method to meet the requirements.

I am sorry. I was referring to .18 and I think you answered my question. My disclosure could be deemed neither to segregate nor conspicusously set forth the required elements.