While a HELOC is in process and the Fed adjusts the rate, the new rate is higher than what the applicant thought they were getting when they applied. Their initial disclosures indicate the higher rate, even though the rate is technically not locked in until closing docs are prepared. Would we need to re-disclose the initial docs to indicate the higher start rate?

Why would you be quoting a specific starting rate in your early HELOC disclosures? Where is that required to be disclosed in 1026.40(d)?

Plus, do you not have this statement in the early disclosure?

.40(d)(2)(ii) A statement that, if a disclosed term changes (other than a change due to fluctuations in the index in a variable-rate plan) prior to opening the plan and the consumer therefore elects not to open the plan, the consumer may receive a refund of all fees paid in connection with the application.