[ldoyle]

We have not had any ARM loans originated after Jan. 10,2015 that have repriced yet. All ARM loans that are repricing were made prior to Jan. 10, 2015. All previous ARM notes did not state a specific date the index would be reviewed as of, only that the rate on the note may change as often as a certain date (for example – on a 5yr ARM which originated on 2-20-12, note states that rate may change every 5th yr beginning on 2-20-17). Note also says that a change in the interest rate will take effect 25 days after the change in the index. (Again-no index review stated). The ARM disclosure states the customer will be notified in writing at least 25 days but no more than 120 days before the due date of a payment at a new level. My question is – Do our previous ARM loans qualify to have only 25 days notice of a rate adjustment, rather than at least 60 days? Would the requirement for 60-120 day notices only apply to ARM loans we originate after Jan.10, 2015? Thanks!!!

[rcooper]

The rate change notice for accounts with no look back period or a short look back period, that are originated prior to January 10, 2015, can be sent 25 days prior to the first payment at the adjusted level.

Here’s an article we posted on this topic: https://mycomplianceresource.com/45-day-look-back-period-for-arms-are-you-set/

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