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Rider on an ARM Loan

Answered by: 
Jim Bedsole

Question: 
On an ARM loan, a rider is attached to the mortgage and both are recorded. Is it a requirement to disclose the interest rate on the rider? I can't locate any Reg stating the rate must be or does not have to be disclosed on rider. What Reg can you refer me to?
Answer: 

This isn't a regulatory issue. The rider is a contractual document subject to state contract law. Does your bank use a major forms vendor for your mortgage forms? If so, I'd recommend you contact that vendor's legal department for the state where you are located for a determination of whether that state requires inclusion of the interest rate in the ARM rider.

First published on BankersOnline.com 3/05/07

First published on 03/05/2007

Filed under: 
Compliance
Filed under compliance as: 
ARM
Interest Rate
IT

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