ok, I have listened to john B's webinar a couple of times now and I think I am close on understanding the 1026.20c notice.

for ARMs currently on the books:
1. our note says we will look at a index 45 days before the rate changes
2. our old notice was sent on that 45th day when we knew the new rate.
3. the first payment was due in additional 30 days.
Conclusion: use the new 1026c form, but our timing is fine - 45 days plus 30 days = 75 days, so we are within the 60-120 days.

if I am close I will move my learning on to the 1026.20d notice.

Your understanding is correct.

Head of the class! Next topic...

Can someone please help translate our note for me? Our loan core system is set "#Days for rate change notice = 35"

Our Note says:
Adjustable Interest Rate and Monthly Payment Changes:The initial fixed rate of interest will change to an adjustable rate on the first day of Dec 2014 and on that day ever 12th month thereafter.

The Index: Beginning with the first Change Date my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index". i]

Is this saying, more or less, that I'm ok at 65 days notice? Thanks in advance

Your note is describing how the rate will change and keys on the "Change Date," which is the date on which the rate change will take effect. The first Change Date is 12/1/14, and presumably it first affects the payment due on 1/1/15.

The regulation calls for the .20(c) notice to be provided from 60 to 120 days (inclusive) before 1/1/15 (and, if applicable, before each January 1). If your system will crank out a notice 35 days before the rate change date, which is 31 days before the due date for the first changed payment, it should appear about 65 or 66 days before the payment date, and if you pop it in the mail quickly, you'll be fine, assuming that the content and format of the notice are correct.

Ok. I got it. Thanks. Now my question has to do with the part about the rate index:

The Note says that The Index is "the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index"

This Index Rate on our loan system is only updated once a month around mid-month. Is that what we can call this Bank's "Current Rate" since our procedure is to only get it once a month or are we supposed to be getting that rate info weekly and updating our system to make a weekly rate available for notice purposes? Thanks

We use the same index and update our system weekly, as the rates are published. I would suggest you update the rates weekly on your system, but as long as you have the current rate in place at the time you are generating your notices, you should be OK.

Updating weekly, while a bit more work, helps make sure that you have the current rate at all times.

That is what I was afraid of. If we update monthly we could be sending out notices with almost 30 day old rates. Plus, the note says "the weekly average yield". But we've used the monthly rate for all these years. Were we wrong under the old rules?

Apparently, you were wrong, but never (again, apparently) got caught.

Ok, I'm getting a handle on this, slowly but surely. I really appreciate the help.