What subsequent disclosures must a qualified lender make to a borrower?

CFR · 2024-01-01 · US · Title 12

(a) (i) The new interest rate on the loan; (ii) The date on which the new rate is effective; and (iii) The factors used to adjust the interest rate on the loan. (2) If the borrower's interest rate is directly tied to a widely publicized external index, a qualified lender must provide written notice to the borrower of the rate change either: (i) Within forty-five (45) days after the effective date of the change; or (ii) As part of the borrower's first regularly scheduled billing statement affected by the rate change. (3) If the borrower's interest rate is not directly tied to a widely publicized external index, a qualified lender must send written notice to the borrower of the rate change within ten (10) days after the effective date of the change. (b) (c) (1) The new effective interest rate on the outstanding balance for the remaining term of the borrower's loan; (2) The date on which the new rate is effective; and (3) The reason for the increase in the borrower stock (or participation certificates) purchase requirement.

official document · source cfr-2024 · id 12:§ 617.7135