HPMLs & Quarterly Adjustable Rates
Answer by David Dickinson, BOL Guru Guru Bio
Question: Our bank currently offers ARM loans where the rate adjusts quarterly. I'm concerned with the new Reg Z high-priced mortgage loan requirements, because the shortest term to first rate adjustment on the APOR table is one year. Will we be prohibited from making rate adjustments more often than annually?
Answer: No, however all your ARMs will be compared to the one year APOR.
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