[rcooper]

A question we received from one of our members:

Is a CHARM booklet required if the ARM is a refinance? I know the Settlement Cost Booklet is not required for refinances and I’m not certain about CHARM booklet.

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[rcooper]

The ARM disclosures (including the CHARM Booklet) required by Section 1026.19(b) are required for all closed-end variable-rate transactions that are secured by the consumer’s principal dwelling and have a term greater than one year. The requirements apply not only to transactions financing the initial acquisition of the consumer’s principal dwelling, but also to any other closed-end variable-rate transaction secured by the principal dwelling. A refinancing is considered a new transaction so the CHARM booklet is required.

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