Periodic rates caps are purely discretionary unless governed under State law or investor or guarantor program requirements.
TRID Loans and Required Rate Cap
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?
First published on 03/14/2021