What Information Must Be Included in the Initial and Ongoing Interest Rate Adjustment Notices?
Both the initial and the ongoing interest rate adjustment notices must include:
The date of disclosure or notice
An explanation referring to the loan being adjustable and that the interest may change during the term of the loan
The effective date of the adjustment and future adjustments, or any other changes to the loan terms on such date
The current and new interest rates
The current and new payments, including the date when the first payment is due
An explanation of how the interest rate is to be determined, including the formula used in making the adjustment
An explanation of the limits on the interest rate or payment increases
An explanation of how the new payment amount is determined
The prepayment penalty and its conditions
Contact information of the servicer
A brief explanation of the alternatives to paying the loan at the new rate (refinancing, selling the property, renegotiating, forbearance)
Housing counselling information
- What Is Predatory Mortgage Servicing?
- What Are the Specific Formal Requirements for Periodic Statements?
- What Are Coupon Books and When Can They Replace Periodic Statements?
- When Are Servicers Allowed to Stop Providing Periodic Statements or Coupon Books?
- How Are Periodic Statements Delivered?
- What Is the Rule on Interest Rate Adjustment Notices?
- When Should I Receive an Interest Rate Adjustment Notice?
- What Is the Prompt Payment Crediting Rule for Servicing Companies?
- What Are the Prompt Payment Crediting and Payoff Statement Rules for Servicers?
- Can the Loan Servicer Refuse to Provide You with a Payoff Balance Statement within 7 Days?
- Can I Choose My Mortgage Servicing Company?
- Are There Any Rules Regarding Written Communication with Servicing Companies?
- Are Servicers Allowed to Charge a Borrower for Force-Placed Insurance Coverage?
- What Are the General Rules Regarding Servicing Policies, Procedures, and Requirements?
- Are There Any Special Rules for Servicers When Dealing with Delinquent Borrowers?
- What Is the "Successors in Interest Rule" for Servicing Companies?
- How Should I Inform Servicers When I Become a Successor in Interest?
- Am I Liable for the Loan Once Confirmed as a Successor in Interest?
- Can I Change My Mortgage Servicing Company?
- Can I Turn to a Government Agency to Complain Against a Mortgage Servicing Company?
- Are There Any Federal Laws Protecting Me from Mortgage Servicers?
- What Are the Mortgage Servicing Rules Issued by the Consumer Financial Protection Bureau?
- What Is the Periodic Statement Rule for Mortgage Servicers?
- Are There Any Exceptions to the Periodic Statement Rule?
- How Many Periodic Statements Am I Entitled to Receive?