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#2251107 - 03/24/21 03:23 PM Amortization Schedule
ckme Offline
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ckme
Joined: Sep 2002
Posts: 248
Is there a requirement to give the borrower a copy of the amortization schedule for consumer, commercial or real estate mortgage loans?

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Lending Compliance
#2251115 - 03/24/21 03:56 PM Re: Amortization Schedule ckme
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,336
Galveston, TX
Only on mortgage loans with PMI for non high risk fixed rate mortgages from a Federal standpoint.
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#2251124 - 03/24/21 05:04 PM Re: Amortization Schedule ckme
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,097
Toano, VA
There's an excellent reason NOT to give an am schedule for consumer loans that call for daily simple interest. Those notes typically call for the borrower to pay one day's interest for each day that passes since the most recent reduction (or increase) in principal. That means the actual amount of interest for the loan could be considerably higher than you estimated at the time the loan was made, if the customer is frequently late. If more of each payment goes to interest than originally expected, then the unpaid principal balance (and payoff) will be higher than shown on the "am schedule." When you give something showing due dates and projected balances, customers don't want to understand that the "am schedule" is an estimate, not a guarantee.
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