On June 9,2020 the Consumer Financial Protection Bureau (CFPB) announced the availability of an updated consumer publication, the Consumer Handbook on Adjustable Rate Mortgages booklet, also known as the CHARM booklet, required under the Real Estate Settlement Procedures Act (RESPA) implemented by Regulation X and the Truth in Lending Act (TILA) implemented by Regulation Z.
New features include:

  • A comparison table that describes adjustable rate mortgages and their differences in relation to fixed-rate loan products;
  • An explanation of how an adjustable rate mortgage works;
  • A tutorial on how to review an ARM Loan Estimate and a lender’s ARM program disclosure;
  • A comparison table for the various adjustable and fixed-rate loan offers that reader has received or will receive; and
  • A description of the risks that come with different types of adjustable rate mortgages.

This version of the CHARM booklet eliminates references to LIBOR due to the forecasted cessation of the index.
Creditors may, at their option, immediately begin using the revised CHARM booklet, or a suitable substitute, to comply with the requirements in Regulation Z. The CFPB understands, however, that some may wish to use their existing stock of the CHARM booklet. Therefore, those who provide this publication may use earlier versions of the CHARM booklet until existing supplies are exhausted. When reprinting the CHARM booklet, the most recent version should be used.
A copy of the revised CHARM Booklet is available here.
A copy of the announcement is available here.