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TRID Loans and Required Rate Cap

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Question: 
All of our TRID loans are on a variable rate that changes monthly. I thought the required rate cap was an increase or decrease of 2% each time it changes. Now I cannot find any documentation regarding this issue. I know we have to disclose the ceiling but is the adjustment under our discretion?
Answer: 

Periodic rates caps are purely discretionary unless governed under State law or investor or guarantor program requirements.

First published on 03/14/2021

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