Skip to content
BOL Conferences
Learn More - Click Here!

New Reply Thread Options
#1955918 - 08/21/14 09:36 PM Initial ARM Rate and Payment change notice
mzachau, CRCM Offline
Gold Star
mzachau, CRCM
Joined: Oct 2006
Posts: 470
San Francisco
1026.20(d)(2)(v) requires the initial ARM notice disclose any limits on the interest rate or payment increases at each interest rate adjustment and over the life of the loan, as applicable.

when a loan Note discloses a ceiling and floor rate for the first rate change and then a different floor and ceiling limit for subsequent rate changes and a interim cap adjustment limit for subsequent changes, are we required to disclose both initial and subsequent rate change limits on the initial notice or can we only disclose initial limits on the initial notice?

Return to Top Reply Quote Quick Reply Quick Quote
#1956496 - 08/25/14 01:57 PM Re: Initial ARM Rate and Payment change notice mzachau, CRCM
Anonymous
Unregistered

You have not posted anonymously

Return to Top Reply Quote Quick Reply Quick Quote
#1956653 - 08/25/14 05:17 PM Re: Initial ARM Rate and Payment change notice mzachau, CRCM
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,530
Bloomington, IN
The initial ARM disclosure is to reflect how and when the rate can change during the course of the loan.

You can't just say the how & when the rate can change within the first 5 years (as an example) and ignore any different term changes effective for the next adjustment period(s).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top Reply Quote Quick Reply Quick Quote
Quick Reply:
HTML is disabled
UBBCode is enabled




Moderator:  MagicCity, P*Q, Truffle Royale