This may be a silly question. Sorry. But according to TIL, an ARM disclosure must be given at the time an application form is provided or a nonrefundable fee is received, whichever is earlier.

If you have a customer come into a branch, or call, and simply ask for an application, do you provide an ARM disclosure with the application?

Thanks!

If they specifically inquire about an ARM yes.

What we have done is put together loan packets that are given or mailed to the applicant and within that packet are all applicable disclosures required at the time of application including our ARM program disclosures.

If you take "applications" over the internet, your ARM program disclosures and the CHARM booklet need to be on your web site and you need to set up a "click through" so the customer sees these.

Thanks for the replies. We do have an online application, and we do present the ARM disclosures/CHARM booklet and provide e-sign requirements. But I guess I never really thought about traditional mailing or emailing of a 1003 to a customer. The way we use to train was that if a customer expressed an interest in an ARM, then boom, provide an ARM Disclosure. But if a customer hasn't expressed an interest in any particular loan product and just requests an application to complete, is it necessary? The reason I ask is because I just found out (isn't compliance always the last to know!) that we have been emailing the PDF of the 1003 to customers upon request for them to either drop off at a branch at their convenience or to return when they meet with a loan officer. I guess there are many who are uncomfortable still with completing an on-line application. I want to tell them that it is ok to do, and to just be sure to provide an ARM disclosure when the applicant submits an application and expresses an interest in an ARM product. Does that sound reasonable?

I agree Mary. I don't need to provide ARM disclosures just in case the applicant might be applying for a variable rate loan. If you don't know when you provide the 1003, don't include the ARM disclosures. If you get the application back and find out they want an ARM, provide the ARM disclosures at that time.