We have a customer who is going thru a divorce and wife has moved and not helping with payments - he's overobligated and cannot make the payments as originally contracted for. We would like to modify the floor and lock in the rate for 2 years to assist in him being able to make the payment while the house is on the market. Everything will stay the same and revert back to original terms after the 2 years. We have done a modification agreement, giving a new TIL, and new corresponding ARM disclosure. Is there anything else I'm missing? Any input is appreciated.

You have probably already done more than required:

Sec. 226.20 Subsequent disclosure requirements.

(a) Refinancings. A refinancing occurs when an existing obligation that was subject to this subpart is satisfied and replaced by a new obligation undertaken by the same consumer. A refinancing is a new transaction requiring new disclosures to the consumer. The new finance charge shall include any unearned portion of the old finance charge that is not credited to the existing obligation. The following shall not be treated as a refinancing:

(2) A reduction in the annual percentage rate with a corresponding change in the payment schedule.

I figured, but wanted to be more safe than sorry! We have not done many of these, so this is uncharted water!

Thank you for your input!