A bank recently discovered that the amortization schedule for ARM loans were disclosed with a fixed rate and did not show the change in payments. The LOS system was correct, however the doc provider reported the amortization as one rate through the course of the payment schedule. Some of the loans are at least a year old. Does the amortization schedule need to be redisclosed and send to all ARM loan borrowers impacted?

Sending an amortization schedule on an ARM loan is a meaningless exercise in futility. You think the index is not going to change during the life of the loan? An amortization schedule is only required on a loan that is a fixed rate transaction that has mortgage insurance.

Thank you!

I should note that there is a difference between delivering an amortization schedule to the borrower and the lender maintaining the amortization schedule that they used to calculate the APR under the recordkeeping requirements of 1026.25.