Home Mortgage Consumer Protection

TILA: Text of the Proposed Rule

Text of the Proposed Revisions

Certain conventions have been used to highlight the proposed changes to the text of the regulation and official interpretation. New language is shown inside ►bold-faced arrows◄, while language that would be removed is set off with [bold-faced brackets].

List of Subjects in 12 CFR Part 1026

Advertising, Consumer Protection, Credit, Credit Unions, Mortgages, National Banks, Reporting and Recordkeeping Requirements, Savings Associations, Truth in Lending.

Authority and Issuance

For the reasons set forth above, the Bureau of Consumer Financial Protection proposes to amend 12 CFR part 1026, as follows:

PART 1026 – Truth in Lending (REGULATION Z)

1. The authority citation for part 1026 continues to read as follows:

12 U.S.C. 5512, 5581; 15 U.S.C. 1601 et seq.

Subpart C – Closed-End Credit

§ 1026.17 General disclosure requirements

(a) Form of disclosures.

(1) The creditor shall make the disclosures required by this subpart clearly and conspicuously in writing, in a form that the consumer may keep. The disclosures required by this subpart may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.). The disclosures required by §§ 1026.17(g), 1026.19(b), and 1026.24 may be provided to the consumer in electronic form without regard to the consumer consent or other provisions of the E-Sign Act in the circumstances set forth in those sections. ►Except for § 1026.20(d), which requires disclosures to be provided separate and distinct from all other correspondence, the◄ [The] disclosures shall be grouped together, shall be segregated from everything else, and shall not contain any information not directly related to the disclosures required under § 1026.18►, § 1026.20(c),◄ or § 1026.47. The disclosures may include an acknowledgment of receipt, the date of the transaction, and the consumer’s name, address, and account number. The following disclosures may be made together with or separately from other required disclosures: the creditor’s identity under § 1026.18(a), the variable rate example under § 1026.18(f)(1)(iv), insurance or debt cancellation under § 1026.18(n), and certain security interest charges under § 1026.18(o). The itemization of the amount financed under § 1026.18(c)(1) must be separate from the other disclosures under § 1026.18, except for private education loan disclosures made in compliance with § 1026.47.

* * *

(b) Time of disclosures. The creditor shall make disclosures before consummation of the transaction. In certain residential mortgage transactions, special timing requirements are set forth in § 1026.19(a). In certain variable-rate transactions, special timing requirements for variable-rate disclosures are set forth in § 1026.19(b) and § 1026.20(c)►and (d)◄. For private education loan disclosures made in compliance with § 1026.47, special timing requirements are set forth in § 1026.46(d). In certain transactions involving mail or telephone orders or a series of sales, the timing of disclosures may be delayed in accordance with paragraphs (g) and (h) of this section.

* * * * *

3. Section 1026.20 is amended by revising the section heading and paragraphs (c) and (d) to read as follows:

§ 1026.20 [Subsequent d]►D◄isclosure requirements► regarding post-consummeation events◄

* * * * *
(c) [Variable-rate] ►Rate◄ adjustments. ►The creditor, assignee, or servicer of an adjustable-rate mortgage shall provide disclosures to consumers, as described in § 1026.20(c), in connection with the adjustment of interest rates resulting in a corresponding adjustment to the payment. To the extent that other provisions of subpart C apply to the disclosures required by this section, those provisions apply to assignees and servicers as well as to creditors. The disclosures required under this section also shall be provided for an interest rate adjustment resulting from the conversion of an adjustable-rate mortgage to a fixed-rate transaction, if that interest rate adjustment results in a corresponding payment change.◄ [Except as provided in paragraph (d) of this section, an adjustment to the interest rate with or without a corresponding adjustment to the payment in a variable-rate transaction subject to § 1026.19(b) is an event requiring new disclosures to the consumer. At least once each year during which an interest rate adjustment is implemented without an accompanying payment change, and at least 25, but no more than 120, calendar days before a payment at a new level is due, the following disclosures, as applicable, must be delivered or placed in the mail:

(1) The current and prior interest rates.
(2) The index values upon which the current and prior interest rates are based.
(3) The extent to which the creditor has foregone any increase in the interest rate.
(4) The contractual effects of the adjustment, including the payment due after the adjustment is made, and a statement of the loan balance.
(5) The payment, if different from that referred to in paragraph (c)(4) of this section, that would be required to fully amortize the loan at the new interest rate over the remainder of the loan term.]

► (1) Coverage of rate adjustment disclosures.

(i) In General. For purposes of § 1026.20(c), an adjustable-rate mortgage or “ARM” is a closed-end consumer credit transaction secured by the consumer’s principal dwelling in which the annual percentage rate may increase after consummation.

(ii) Exceptions. The requirements of § 1026.20(c) do not apply to:

(A) Construction loans with terms of one year or less; or

(B) The first adjustment to an ARM if the first payment at the adjusted level is due within 210 days after consummation and the actual, not estimated, new interest rate was disclosed at consummation pursuant to § 1026.20(d).

(2) Timing and content of rate adjustment disclosures with a change in payment. Disclosures required by § 1026.20(c) must be provided to consumers at least 60, but no more than 120, days before a payment at a new level is due. Disclosures must be provided to consumers at least 25, but no more than 120, days before a payment at a new level is due for ARMs originated prior to July 21, 2013 in which the mortgage note 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. Disclosures must be provided to consumers as soon as practicable, but not less than 25 days before a payment at a new level is due for the first adjustment to an ARM if it occurs within 60 days of consummation and the actual, not estimated, new interest rate was not disclosed at consummation. The disclosures must provide the following information:

(i) A statement providing:

(A) An explanation that under the terms of the consumer’s adjustable-rate mortgage, the specific time period in which the current interest rate has been in effect is ending and that the interest rate and mortgage payment will change;

(B) The effective date of the interest rate adjustment, and when additional future interest rate changes are scheduled to occur; and

(C) Any other changes to loan terms, features, or options taking effect on the same date as the interest rate adjustment, such as the expiration of interest-only or payment-option features;

(ii) A table containing the following information:

(A) The current and new interest rates;

(B) The current and new payments and the date the first new payment is due; and

(C) For interest-only or negatively-amortizing payments, the amount of the current and new payment allocated to principal, interest, and taxes and insurance in escrow, as applicable. The current payment allocation disclosed shall be based on the expected payment allocation for the last payment prior to the date of the disclosure. The new payment allocation disclosed shall be based on the expected payment allocation for the first payment for which the new interest rate will apply;

(iii) An explanation of how the interest rate is determined, including:

(A) The specific index or formula used in making adjustments and a source of information about the index or formula; and

(B) Any adjustment to the index, including the amount of any margin and an explanation that the margin is the addition of a certain number of percentage points to the index;

(iv) Any limits on the interest rate or payment increases at each adjustment and over the life of the loan, as applicable, including the extent to which such limits result in the creditor, assignee, or servicer foregoing any increase in the interest rate and the earliest date that such foregone interest may apply to additional future interest rate adjustments, subject to those limits;

(v) An explanation of how the new payment is determined, including:

(A) The index or formula used;

(B) The amount of any adjustment to the index or formula, for example, by the addition of a margin or application of previously foregone interest increase;

(C) The loan balance expected on the date of the interest rate adjustment; and

(D) The length of the remaining loan term expected on the date of the interest rate adjustment. Any change in the term or maturity of the loan caused by the adjustment also shall be disclosed;

(vi) For interest-only or negatively amortizing loans, a statement that the new payment will not be allocated to pay loan principal. If negative amortization occurs as a result of the adjustment, the statement shall set forth the payment required to fully amortize the loan at the new interest rate over the remainder of the loan term or to fully amortize the loan without extending the loan term; and

(vii) The circumstances under which any prepayment penalty, as defined in subpart E by § 1026.41(d)(7)(iv), may be imposed when consumers fully repay their adjustable-rate mortgages, such as when selling or refinancing their principal residence, the time period during which the penalty may be imposed, and the maximum amount (in dollars) of the penalty possible during that time period.

(3) Format of disclosures.

(i) The disclosures required by § 1026.20(c) shall be provided in the form of the table and in the same order as, and with headings and format substantially similar to, Forms H-4(D)(1) and (2) in Appendix H to this part; and

(ii) The disclosures required by paragraph (c)(2)(ii) shall be in the form of a table located within the table described in paragraph (c)(3)(i) of this section. These disclosures shall appear in the same order as and with headings and format substantially similar to the table inside the larger table in Forms H-4(D)(1) and (2) in Appendix H to this part.◄

(d)[Information provided in accordance with variable-rate subsequent disclosure regulations of other Federal agencies may be substituted for the disclosure required by paragraph (c) of this section.]►Initial rate adjustments. The creditor, assignee, or servicer of an adjustable-rate mortgage shall provide disclosures to consumers, as described in § 1026.20(d), in connection with the initial interest rate adjustment. To the extent that other provisions of subpart C apply to the disclosures required by this section, those provisions apply to assignees and servicers as well as to creditors. The disclosures shall be provided in writing, separate and distinct from all other correspondence. The disclosures shall be provided at least 210, but no more than 240, days before the first payment at the adjusted level is due. If the first payment at the adjusted level is due within the first 210 days after consummation, the disclosures shall be provided at consummation.

(1) Coverage of initial rate adjustment disclosures.

(i) In general. For purposes of §1026.20(d), an adjustable-rate mortgage or “ARM” is a closed-end consumer credit transaction secured by the consumer’s principal dwelling in which the annual percentage rate may increase after consummation.

(ii) Exceptions. The requirements of § 1026.20(d) do not apply to construction loans with terms of one year or less.

(2) Content of initial rate adjustment disclosures. If the new interest rate (or the new payment calculated from the new interest rate) is not known as of the date of the disclosure, an estimate shall be disclosed and labeled as such. This estimate shall be based on the index figure reported in the source of information described in paragraph (d)(2)(iv)(A) within fifteen business days prior to the date of the disclosure. The disclosures required by § 1026.20(d) shall provide the following:

(i) The date of the disclosure;

(ii) A statement providing:

(A) An explanation that under the terms of the consumer’s adjustable-rate mortgage, the specific time period in which the current interest rate has been in effect is ending and that any change in the interest rate may result in a change in the mortgage payment;

(B) The effective date of the interest rate adjustment and when additional future interest rate changes are scheduled to occur; and

(C) Any other changes to loan terms, features, or options taking effect on the same date as the interest rate adjustment, such as the expiration of interest-only or payment-option features;

(iii) A table containing the following information:

(A) The current and new interest rates;

(B) The current and new payments and the date the first new payment is due; and

(C) For interest-only or negatively-amortizing payments, the amount of the current and new payment allocated to principal, interest, and taxes and insurance in escrow, as applicable. The current payment allocation disclosed shall be based on the expected payment allocation for the last payment prior to the date of the disclosure. The new payment allocation disclosed shall be based on the expected payment allocation for the first payment for which the new interest rate will apply;

(iv) An explanation of how the interest rate is determined, including:

(A) The specific index or formula used in making adjustments and a source of information about the index or formula; and

(B) Any adjustment to the index, including the amount of any margin and an explanation that the margin is the addition of a certain number of percentage points to the index;

(v) Any limits on the interest rate or payment increases at each adjustment and over the life of the loan, as applicable, including the extent to which such limits result in the creditor, assignee, or servicer foregoing any increase in the interest rate and the earliest date that such foregone interest may apply to additional future interest rate adjustments, subject to those limits;

(vi) An explanation of how the new payment is determined, including:

(A) The index or formula used;

(B) The amount of any adjustment to the index or formula, for example, by the addition of a margin;

(C) The loan balance expected on the date of the interest rate adjustment;

(D) The length of the remaining loan term expected on the date of the interest rate adjustment. Any change in the term or maturity of the loan caused by the adjustment also shall be disclosed; and

(E) If the new interest rate or new payment provided is an estimate, a statement that another disclosure containing the actual new interest rate and new payment will be provided to the consumer 2 to 4 months prior to the date the first new payment is due for interest rate adjustments that result in a corresponding payment change, pursuant to § 1026.20(c).

(vii) For interest-only or negatively amortizing loans, a statement that the new payment will not be allocated to pay loan principal. If negative amortization occurs as a result of the adjustment, the statement shall set forth the payment required to fully amortize the loan at the new interest rate over the remainder of the loan term or to fully amortize the loan without extending the loan term;

(viii) A list of the following alternatives to paying at the new rate that consumers may pursue and a brief explanation of each alternative:

(A) Refinancing the loan with the current or other lender;

(B) Selling the property and using the proceeds to pay off the loan;

(C) Modifying the terms of the loan with the lender; or

(D) Arranging payment forbearance with the lender;

(ix) The circumstances under which any prepayment penalty, as defined in subpart E by § 1026.41(d)(7)(iv), may be imposed when consumers fully repay their adjustable-rate mortgages, such as when selling or refinancing their principal residence, the time period during which the penalty may be imposed, and the maximum amount (in dollars) of the penalty possible during that time period;

(x) The telephone number of the creditor, assignee, or servicer for consumers to call if they anticipate not being able to make the new payment; and

(xi) The mailing and internet addresses and telephone number to access the State Housing Finance Authority (as defined in Section 1301 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989) for the State in which the consumer resides, and the website and telephone number to access either the Bureau list or the HUD list of homeownership counselors or counseling organizations.

(3) Format of initial rate adjustment disclosures.

(i) Except for the disclosures provided by paragraph (d)(2)(i), the disclosures required by § 1026.20(d) shall be provided in the form of a table and in the same order as, and with headings and format substantially similar to, Forms H- 4(D)(3) and (4) in Appendix H to this part;

(ii) The disclosures required by paragraph (d)(2)(i) shall appear outside of and above the table required in paragraph (d)(3)(i); and

(iii) The disclosures required by paragraph (d)(2)(iii) shall be in the form of a table located within the table described in paragraph (d)(3)(i) of this section. These disclosures shall appear in the same order as, and with headings and format substantially similar to, the table inside the larger table in Forms H-4(D)(3) and (4) in Appendix H to this part. ◄

Subpart E — Special Rules for Certain Home Mortgage Transactions

5. Section 1026.36 is amended by revising paragraph (c) to read as follows:

§ 1026.36 Prohibited acts or practices in connection with a credit secured by a dwelling.
* * * * *

(c) Servicing practices. ► For purposes of this paragraph (c), the terms “servicer” and “servicing” have the same meanings as provided in 12 CFR 1024.2(b).

(1) Payment Processing. In connection with a consumer credit transaction secured by a consumer’s principal dwelling:

(i) Full contractual payments. No servicer shall fail to credit a full contractual payment to the consumer’s loan account as of the date of receipt, except when a delay in crediting does not result in any charge to the consumer or in the reporting of negative information to a consumer reporting agency, or except as provided in paragraph (c)(1)(iii) of this section. A full contractual payment is an amount sufficient to cover principal, interest, and escrow (if applicable) for a given billing cycle. A payment qualifies as a full contractual payment even if it does not include amounts required to cover late fees or other fees that have been assessed.

(ii) Partial payments. Any servicer that retains a partial payment, meaning any payment less than a full contractual payment, in a suspense or unapplied funds account shall:

(A) Disclose to the consumer the total amount of funds held in such suspense or unapplied funds account on the periodic statement required by § 1026.41, if a periodic statement is required.

(B) Promptly apply funds held in the suspense or unapplied funds account to the oldest outstanding payment when sufficient funds accumulate in such account to cover a full contractual payment.

(iii) Non-conforming payments. If a servicer specifies in writing requirements for the consumer to follow in making payments, but accepts a payment that does not conform to the requirements, the servicer shall credit the payment as of 5 days after receipt.

(2) No pyramiding of late fees. In connection with a consumer credit transaction secured by a consumer’s principal dwelling, a servicer shall not impose any late fee or delinquency charge for a payment if:

(i) Such a fee or charge is attributable solely to failure of the consumer to pay a late fee or delinquency charge on an earlier payment; and

(ii) The payment is otherwise a full contractual payment received on the due date, or within any applicable grace period.

(3) Payoff Statements. In connection with a consumer credit transaction secured by a consumer’s dwelling, a creditor, assignee or servicer, as applicable, must provide an accurate statement of the total outstanding balance that would be required to pay the consumer’s obligation in full as of a specified date. The statement shall be provided within a reasonable time, but in no case more than 7 business days, after receiving a written request from the consumer or any person acting on behalf of the consumer.◄

[ (1) In connection with a consumer credit transaction secured by a consumer’s principal dwelling, no servicer shall:

(i) Fail to credit a payment to the consumer’s loan account as of the date of receipt, except when a delay in crediting does not result in any charge to the consumer or in the reporting of negative information to a consumer reporting agency, or except as provided in paragraph (c)(2) of this section;

) Impose on the consumer any late fee or delinquency charge in connection with a payment, when the only delinquency is attributable to late fees or delinquency charges assessed on an earlier payment, and the payment is otherwise a full payment for the applicable period and is paid on its due date or within any applicable grace period;

(iii) Fail to provide, within a reasonable time after receiving a request from the consumer or any person acting on behalf of the consumer, an accurate statement of the total outstanding balance that would be required to satisfy the consumer’s obligation in full as of a specified date.

If a servicer specifies in writing requirements for the consumer to follow in making payments, but accepts a payment that does not conform to the requirements, the servicer shall credit the payment as of 5 days after receipt.

(3) For purposes of this paragraph (c), the terms “servicer” and “servicing” have the same meanings as provided in 12 CFR 1024.2(b), as amendedstrong>]

* * * * *

5. Section 1026.41 is added to read as follows:

►§ 1026.41 Periodic statements for residential mortgage loans.

(a) In general. A servicer of a closed-end consumer credit transaction secured by a dwelling, must transmit to the consumer for each billing cycle a periodic statement meeting the requirements of paragraphs (b), (c), and (d) of this section, unless an exemption in paragraph (e) of this section applies. If a loan has a billing cycle shorter than a period of 31 days (for example, a bi-weekly billing cycle), a periodic statement covering an entire month may be used. For the purposes of this section, servicer is defined to mean creditor, assignee, or servicer, as applicable.

(b) Timing of the periodic statement. The periodic statement must be delivered or placed in the mail within a reasonably prompt time after the payment due date or the end of any grace period provided for the previous billing cycle. The first periodic statement must be sent no later than 10 days before the first payment is due.

(c) Form of the periodic statement. The creditor, assignee, or servicer must make the disclosures required by this section clearly and conspicuously in writing, or electronically if the consumer agrees, and in a form that the consumer may keep. Sample forms for periodic statements are provided in Appendix H-28. Proper use of these forms will be deemed in compliance with this section.

(d) Content and layout of the periodic statement. The periodic statement shall contain the information in this paragraph (d), in the manner described below.

(1) Amount due. The following disclosures must be grouped together in close proximity to each other, and be located at the top of the first page of the statement:

(i) The payment due date;

(ii) The amount of any late payment fee, and the date on which that fee will be imposed if payment has not been received; and

(iii) The amount due. The amount due must be more prominent than other disclosures on the page. If a loan has multiple payment options, the amount due under each of the payment options must be listed.

(2) Explanation of amount due. The following items must be grouped together in close proximity to each other and located on the first page of the statement:

(i) The monthly payment amount, including a breakdown showing how much, if any, will be applied to principal, interest, and escrow. If a loan has multiple payment options, a breakdown of each of the payment options must be listed along with a statement whether the principal balance will increase, decrease or stay the same for each option listed;

(ii) The total sum of any fees or charges imposed since the last statement; and

(iii) Any payment amount past due.

(3) Past Payment Breakdown. The following items must be grouped together in close proximity to each other and located on the first page of the statement:

(i) The total of all payments received since the last statement, including a breakdown showing how much, if any, of those payments was applied to principal, interest, escrow, fees and charges, and any partial payment or suspense account; and

(ii) The total of all payments received since the beginning of the current calendar year, including a breakdown of how much, if any, of those payments was applied to principal, interest, escrow, fees and charges, and the amount currently held in any partial payment or suspense account.

(4) Transaction activity. A list of all the transaction activity that occurred since the last statement must be included on the periodic statement. For purposes of this paragraph (d)(4), transaction activity means any activity that credits or debits the outstanding account balance. The transaction activity must include the date of the transaction, a brief description of the transaction, and the amount of the transaction for each activity on the list.

(5) Messages. If a statement reflects a partial payment that was placed in a suspense or unapplied funds account, the periodic statement must state what must be done for the funds to be applied. Such statement must be on the front page of the statement.

(6) Contact information. The periodic statement must include a toll-free telephone number and, if applicable, an electronic mailing address that may be used by the consumer to obtain information about the mortgage, on the front page of the statement.

(7) Account information. The following items must be provided on the statement:

(i) The amount of the outstanding principal balance;

(ii) The current interest rate in effect for the loan;

(iii) The date on which the interest rate may next change; and

(iv) The amount of any prepayment penalty that may be charged. For the purposes of this paragraph (d)(7)(iv), prepayment penalty means a charge imposed for paying all or part of a transaction’s principal before the date on which the principal is due.

(v) Housing counselor information. The periodic statement must include the website address, if applicable, and telephone number to access:

(A) any State Housing Finance Authority (as defined in Section 1301 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989) for the state in which the property is located; and

(B) Either the Bureau list or the HUD list of homeownership counselors or counseling organizations.

(8) Delinquency information. If the consumer is more than 45 days delinquent, the following items must be grouped together in close proximity to each other and located on the first page of the statement:

(i) The date on which the consumer became delinquent;

(ii) A statement alerting the consumer to possible risks, such as foreclosure, and expenses that may be incurred if the delinquency is not cured;

(iii) An account history showing the consumer, for the lesser of the past 6 months or the period since the last time the account was current, the amount due for each billing cycle, or if a payment was fully paid, the date on which it was considered fully paid;

(iv) Notice of any loan modification programs (trial or permanent) to which the consumer has been accepted, if applicable;

(v) Notice that the loan has been referred to foreclosure, if applicable;

(vi) The total payment amount needed to bring the loan current; and

(vii) A statement directing the consumer to the housing counselor information required by (d)(7)(v).

(e) Exemptions.

(1) Reverse Mortgages. Reverse mortgage transactions, as defined by § 1026.33(a), are exempt from the requirements of this section.

(2) Timeshare. Timeshare plans, as defined by 11 U.S.C. 101(53(D)), are exempt from the requirements of this section.

(3) Coupon Book Exemption. The requirements of paragraph (a) do not apply to fixed-rate loans if the creditor, assignee, or servicer:

(i) Provides the consumer with a coupon book that includes on each coupon the information listed in paragraph (d)(1) of this section;

(ii) Provides the consumer with a coupon book that includes anywhere in the coupon book:

(A) The account information listed in paragraph (d)(7) of this section;

(B) The contact information for the servicer, listed in paragraph (d)(6) of this section; and

(C) Information on how the consumer can obtain the information listed in paragraph (e)(3)(iii) of this section.

(iii) Makes the following information available to the consumer by telephone, writing or electronically, if the consumer consents:

(A) The information in Explanation of Amount Due, listed in paragraph (d)(2) of this section;

(B) The past payment breakdown information, listed in paragraph (d)(3) of this section; and

(C) The transaction activity information listed in paragraph (d)(4) of this section;

(iv) Provides the consumer the information listed in (d)(8) above in writing, for any billing cycle during which the borrower is more than 45 days delinquent.

(4) Small Servicer Exemption. A creditor, assignee or servicer is exempt from the requirements of this section for loans serviced by a small servicers. To qualify as a small servicer, a servicer must meet all of the following requirements:

(i) Service 1,000 or fewer mortgage loans. In determining whether a small servicer services 1,000 mortgage loans or fewer, a servicer is evaluated based on its size as of January 1 for the remainder of the calendar year. A servicer that, together with its affiliates, crosses the threshold will have six months or until the beginning of the next calendar year, whichever is later, to begin compliance other than as a small servicer.

(ii) Only service mortgage loans for which the servicer (or an affiliate) is an owner or assignee or the servicer (or an affiliate) is the entity to whom the mortgage loan obligation was initially repayable.◄

6. Appendix H to Part 1026 is amended by removing the entry for H-4(D) Variable-Rate Model Clauses (§ 1026.20(c)), adding entries for H-4(D)(1), H-4(D)(2), H-4(D)(3), and H-4(D)(4), adding entries for H-28(A), H-28(B), H-28(C), and H-28(D), and removing and adding entries in the table of contents at the beginning of the appendix to read as follows:

Appendix H to Part 1026 – Closed-End Model Forms and Clauses

* * * * *

[H-4(D) Variable-Rate Model Clauses (§ 1026.20(c))] - View Form H-4(D)

►H-4(D)(1) Adjustable-Rate Mortgage Model Form (§ 1026.20(c)) – View Form H-4(D)(1)

H-4(D)(2) Adjustable-Rate Mortgage Sample Form (§ 1026.20(c)) – View Form H-4(D)(2)

H-4(D)(3) Adjustable-Rate Mortgage Model Form (§ 1026.20(d)) – View Form H-4(D)(3)

H-4(D)(4) Adjustable-Rate Mortgage Sample Form (§ 1026.20(d)) – View Form H-4(D)(4)◄

* * * * *

►H-28(A) Sample Form of Periodic Statement – View Form H-28(A)

H-28(B) Sample Form of Periodic Statement with Delinquency Box- View Form H-28(B)

H-28(C) Sample Form of Periodic Statement for a Payment-Options Loan- View Form H-28(C)

H-28(D) Sample Clause for Housing Counselor Contact Information – View Form H-28(D)◄

◄

7. In Supplement I to Part 1026:

A. Under Section 1026.17— General Disclosure Requirements, revise paragraphs 17(a)(1)-2.ii and 17(c)(1)-1.

B. Under Section 1026.18— Content of Disclosures, revise paragraph 18(f)-1.

C. Under Section 1026.19—Certain Mortgage and Variable-Rate Transactions, revise paragraphs 19(b)-4, 19(b)-5.i.C and 19(b)(2)(xi).

D. Under Section 1026.20— Subsequent Disclosure Requirements:

i. Revise the section heading.

ii. Amend 20(c) Variable-Rate Adjustments by revising paragraphs 1. and 2. and removing paragraph 3.

iii. Remove subheading Paragraph 20(c)(1) and remove paragraph 1. under this subheading.

iv. New subheading Paragraph 20(c)(1)(i) is added and paragraph 1. under this subheading is added.

v. New subheading Paragraph 20(c)(1)(ii) is added and paragraphs 1., 2., and 3. under this subheading are added.

vi. Amend Paragraph 20(c)(2) by revising paragraph 1.

vii. New subheading Paragraph 20(c)(2)(ii)(A) is added and paragraph 1. under this subheading is added.

viii. New subheading Paragraph 20(c)(2)(iv) is added and paragraph 1. under this subheading is added.

ix. New subheading Paragraph 20(c)(2)(v)(B) is added and paragraph 1. under this subheading is added.

x. New subheading Paragraph 20(c)(2)(vi) is added and paragraphs 1. and 2. under this subheading are added.

xi. Remove subheading Paragraph 20(c)(3) and remove paragraph 1. under this subheading.

xii. Remove subheading Paragraph 20(c)(4) and remove paragraph 1. under this subheading.

xiii. Remove subheading Paragraph 20(c)(5) and remove paragraph 1. under this subheading.

xiv. New subheading Paragraph 20(d) is added and paragraphs 1., 2., and 3. under this subheading are added.

xv. New subheading Paragraph 20(d)(1)(i) is added and paragraph 1. under this subheading is added.

xvi. New subheading Paragraph 20(d)(1)(ii) is added and paragraphs 1. and 2. under this subheading are added.

xvii. New subheading Paragraph 20(d)(2)(i) is added and paragraph 1. under this subheading is added.

xviii. New subheading Paragraph 20(d)(2)(iii)(A) is added and paragraph 1. under this subheading is added.

xix. New subheading Paragraph 20(d)(2)(v) is added and paragraph 1. under this subheading is added.

xx. New subheading Paragraph 20(d)(2)(vii) is added and paragraphs 1. and 2. under this subheading are added.

xxi. New subheading Paragraph 20(d)(2)(viii) is added and paragraph 1. under this subheading is added.

E. Under Section 1026.36(c)— Servicing Practices:

i. Under subheading Paragraph 36(c)(1)(iii), remove paragraph 1.

ii. New subheading Paragraph 36(c)(3) is added and paragraph 1, under this subheading, is added.

iii. Redesignate existing paragraphs 2., 3., and 4. under subheading Paragraph 36(c)(1)(iii) as new paragraphs 2., 3., and 4., respectively, under subheading Paragraph 36(c)(3).

iv. Redesignate existing paragraphs 1., 2., and 3. under subheading Paragraph 36(c)(2) as new paragraphs 1., 2., and 3., respectively, under subheading Paragraph 36(c)(1)(iii).

v. Redesignate existing paragraph 1 under subheading Paragraph 36(c)(1)(ii) as paragraph 1 under subheading Paragraph 36(c)(2).

vi. Under subheading Paragraph 36(c)(1)(ii), add new paragraph 1.

vii. Under subheading Paragraph 36(c)(3), revise the first sentence of new paragraph 1 and the first sentence of new paragraph 2.

F. Add new Section 1026.41— Periodic Statements for Residential Mortgage Loans:

i. New section heading Section 41 – Periodic Statements for Residential Loans is added.

ii. New subheading 41(a) In General is added and paragraphs 1., 2.,3., and .4 under this subheading are added.

iii. New subheading 41(b) Timing of the Periodic Statement is added and paragraph 1. under this subheading is added.

iv. New subheading 41(c) Form of the Periodic Statement is added and paragraphs 1., 2., and 3. under this subheading are added.

v. New subheading 41(d) Content and Format of the Periodic Statement is added and paragraphs 1., 2., and 3. under this subheading are added.

vi. New subheading 41(d)(3) Past Payment Breakdown is added and paragraph 1. under this subheading is added.

vii. New subheading 41(d)(4) Transaction Activity is added and paragraphs 1., 2., and 3. under this subheading are added.

viii. New subheading 41(d)(6) Contact Information is added and paragraphs 1. and 2. under this subheading are added.

ix. New subheading 41(d)(7)(iv) Prepayment Penalty is added and paragraphs 1. and 2. under this subheading are added.

x. New subheading 41(e) Exemptions is added and paragraph 1. under this subheading is added.

xi. New subheading 41(e)(3) Coupon Book Exemption is added and paragraphs 1., 2., 3., and 4. under this subheading are added.

xii. New subheading 41(e)(4) Small Servicers is added and paragraphs 1., 2., 3., and 4. under this subheading are added.

G. Under Appendices G and H— Open-End and Closed-End Model Forms and Clauses, revise paragraph 1.

H. Under Appendix H— Closed-End Model Forms and Clauses, revise paragraph 7(i).

The revisions and additions read as follows:

Go to TILA: Commentary