Requirements for home equity plans.

CFR · 2024-01-01 · US · Title 12

The requirements of this section apply to open-end credit plans secured by the consumer's dwelling. For purposes of this section, an annual percentage rate is the annual percentage rate corresponding to the periodic rate as determined under § 1026.14(b). (a) (2) (3) For an application that is accessed by the consumer in electronic form, the disclosures required under this section may be provided to the consumer in electronic form on or with the application. (b) (c) (d) (1) (2) (ii) A statement that, if a disclosed term changes (other than a change due to fluctuations in the index in a variable-rate plan) prior to opening the plan and the consumer therefore elects not to open the plan, the consumer may receive a refund of all fees paid in connection with the application. (3) (4) (ii) A statement that the consumer may receive, upon request, information about the conditions under which such actions may occur. (iii) In lieu of the disclosure required under paragraph (d)(4)(ii) of this section, a statement of such conditions. (5) (i) The length of the draw period and any repayment period. (ii) An explanation of how the minimum periodic payment will be determined and the timing of the payments. If paying only the minimum periodic payments may not repay any of the principal or may repay less than the outstanding balance, a statement of this fact, as well as a statement that a balloon payment may result. A balloon payment results if paying the minimum periodic payments does not fully

official document · source cfr-2024 · id 12:§ 1026.40