ARM Loan - No Adjustment Schedule
Answer by Dan Persfull, BOL Guru Guru Bio
Question: If the loan product is an ARM, but the TIL reflects 359 of the same payments, hence no adjustment schedule, is this a violation? It worked out somehow that the floor rate with the index is so low the system would not calculate any adjustments.
Answer: The TIL payment stream would reflect the payment schedule as shown, based on the initial rate at the time of consummation as long as the initial rate was not a discount or premium rate.
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