ARM Loan with Annual Payments

Posted By: dhutson

ARM Loan with Annual Payments - 06/22/21 03:30 PM

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.
Posted By: rlcarey

Re: ARM Loan with Annual Payments - 06/22/21 03:40 PM

Sounds like maybe a system limitation. How often are you changing your interest rate?
Posted By: dhutson

Re: ARM Loan with Annual Payments - 06/22/21 03:45 PM

it is fixed for the first 66 months and then every 12 months
Posted By: rlcarey

Re: ARM Loan with Annual Payments - 06/22/21 03:57 PM

Then as long as your servicing system can handle the subsequent ARM notices, it sounds like a system limitation.
Posted By: dhutson

Re: ARM Loan with Annual Payments - 06/22/21 06:22 PM

Thanks!