Point 7.4 is just around the corner and you may not realize it now, but you really need this release!
The Feds issued an interim rule for closed-end mortgage loans under Regulation Z in September 2010. In their own words, “the interim rule implements provisions of the Mortgage Disclosure Improvement Act (MDIA) that require lenders to disclose how borrowers’ regular mortgage payments can change over time.”
In addition to things like balloon payments or options to make only minimum payments that will cause loan amounts to increase, a payment summary table of lender cost disclosures must have:
- The initial interest rate together with the corresponding monthly payment;
- For adjustable-rate or step-rate loans, the maximum interest rate and payment that can occur during the first five years and a “worst case” example showing the maximum rate and payment possible over the life of the loan; and
- The fact that consumers might not be able to avoid increased payments by refinancing their loans.
Implementation of the interim rule published in September is required as of January 30.
Don’t take any chances with your lenders! Make sure your account is current and on MyCalyx so you can download 7.4 on January24!
Point 7.4 includes the TIL you need for January 30.
Learn about other important compliance updates included in 7.4 in later posts or you can visit our product page for more details.
Not current? Call 800-342-2599 now.