Answer:
Every time the rate changes and the payment is adjusted you must send a regular rate change notice at least 60 days before the first payment at the adjusted level. The first time the rate changes two notices are required - the regular notice, mentioned in the previous sentence, and an initial rate change notice that must be sent at least 210 days before the first payment at the adjusted level. The rate and payment amounts in the initial notice are estimated.
-----------------------------
Learn more about Jack Holzkencht’s webinar
Common Pitfalls of ARM Disclosures