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#2255716 - 06/22/21 03:30 PM ARM Loan with Annual Payments
dhutson Offline
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Joined: Sep 2015
Posts: 18
Are annual payments allowed on ARM loans under TRID? Our system is automatically defaulting the payments to monthly for ARM loans and won't let us change them to annual payments. It let us do an annual payment on a fixed rate and produced the LE and CD correctly, but won't let us do it on ARM loans.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2255718 - 06/22/21 03:40 PM Re: ARM Loan with Annual Payments dhutson
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,239
Galveston, TX
Sounds like maybe a system limitation. How often are you changing your interest rate?
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#2255720 - 06/22/21 03:45 PM Re: ARM Loan with Annual Payments dhutson
dhutson Offline
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Joined: Sep 2015
Posts: 18
it is fixed for the first 66 months and then every 12 months

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#2255725 - 06/22/21 03:57 PM Re: ARM Loan with Annual Payments dhutson
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,239
Galveston, TX
Then as long as your servicing system can handle the subsequent ARM notices, it sounds like a system limitation.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2255742 - 06/22/21 06:22 PM Re: ARM Loan with Annual Payments dhutson
dhutson Offline
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Joined: Sep 2015
Posts: 18
Thanks!

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