Help! We did not have any of the new ARM disclosures on the 10th but we do today. I had been assured by our Core system that they were ready to go and I had no way to test it until one actually spooled. Situation: The loan has a 45 day look back period with a 7-12-14 adjustment date; the new payment beginning 8-19-14. The disclosure printed with a due date for the new payment of 9-19-14. The owner of the company says that is the only day the payment can start because of our 45 day look back period. He says it has to be 45 days out from the change date.
I thought the 45 days was back from the adjustment date not back from the first payment date. I would appreciate it if you could clear this up. Thanks
I agree with your interpretation. Your contract should say what your look back period is.
1026.20(c)(2): Timing and content. Except as otherwise provided in paragraph (c)(2) of this section, the disclosures required by this paragraph (c) shall be provided to consumers at least 60, but no more than 120, days before the first payment at the adjusted level is due. The disclosures shall be provided to consumers at least 25, but no more than 120, days before the first payment at the adjusted level is due for ARMs with uniformly scheduled interest rate adjustments occurring every 60 days or more frequently and for ARMs originated prior to January 10, 2015 in which the loan contract requires the adjusted interest rate and payment to be calculated based on the index figure available as of a date that is less than 45 days prior to the adjustment date. The disclosures shall be provided to consumers as soon as practicable, but not less than 25 days before the first payment at the adjusted level is due, for the first adjustment to an ARM if it occurs within 60 days of consummation and the new interest rate disclosed at consummation pursuant to § 1026.20(d) was an estimate.