The Federal Reserve today announced a slew of changes and proposed changes to mortgage loan disclosures provided to consumers under the Truth in Lending Act, even as plans to create a new, simplified mortgage loan disclosure form move forward.The Fed's interim rule rule revising disclosure requirements under Regulation Z of the Truth in Lending Act applies to loan applications received on or after Jan. 30. The interim rule requires that loan disclosures include a payment summary table stating the initial interest rate together with the corresponding monthly payment.For adjustable-rate mortgage (ARM) or step-rate loans, the table must show the maximum interest rate and payment that can occur during the first five years and a "worst case" example showing the maximum rate and payment possible over the life of the loan.Beginning Jan. 1, the Fed said in a separate announcement, borrowers must also be notified when their loan is sold or transferred.The Fed is also proposing changes...
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